Thursday, October 19 2017

VietNamNews

VN stocks fall on energy, bank shares

Update: September, 28/2017 - 09:00
Investors watch stocks move at Sacombank Securities Company. — VNS/VNS Photo Hoàng Hải
Viet Nam News

HÀ NỘI — Vietnamese shares fell on both local exchanges yesterday as energy, brokerage and bank industries dropped on profit-taking.

Việt Nam’s benchmark VN Index on the HCM Stock Exchange lost 0.20 per cent to close at 803.77 points. The benchmark index has declined by total 0.4 per cent in the last three sessions.

The HNX Index on the Hà Nội Stock Exchange slipped 0.36 per cent to end at 107.52 points. The northern market index posted its first loss following a five-sesion rally of total 3 per cent.

Market trading liquidity declined from Tuesday. More than 221.8 million shares were traded on both local exchanges, worth VNĐ4.32 trillion (roughly US$192 million).

Wednesday’s trading figures were down 11.7 per cent in volume and 6.2 per cent in value compared to the previous session.

Energy, brokerage and banking sectors were to blame for the decline of the two local exchanges on Wednesday.

The energy sector was driven down by PetroVietnam Drilling and Well Services (PVD), PetroVietnam Coating (PVB) and PetroVietnam Mud Drilling (PVC), which dropped between 1.2 per cent and 2 per cent.

The main reason for the fall of energy stocks came after Brent crude lost steam on Tuesday, finishing the trading day at $58.44 a barrel and ending a four-session gain of 7 per cent since September 19.

Bank stocks were led down by Sacombank (STB) and Asia Commercial Bank (ACB), which fell 2 per cent and 1.6 per cent, respectively.

STB had soared 8.2 per cent in the previous two sessions and ACB had rallied total 8.5 per cent in the previous seven trading sessions.

Among declining brokerage stocks were HCM City Securities (HCM), Thiên Việt Securities (TVS), Agribank Securities (AGR) and MB Securities (MBS).

On the positive side, the real estate sector was lifted by Vingroup (VIC), which jumped 3.4 per cent to extend gains for a second day with total growth of 4.3 per cent.

Vincom Retail, the retail arm of Vingroup, has submitted a listing registration document to the HCM Stock Exchange to trade total 1.9 billion shares on the southern market.

Bảo Việt Securities Company (BVSC) said in its daily report that investors seemed unwilling to reduce the selling pressure on local stocks while the market demand remained weak, leading to underperformance of large-cap shares.

Trading liquidity weakened, proving that investors were losing confidence in the market, BVSC said, adding that the stock market will likely continue declining in coming sessions. — VNS

 

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