Wednesday, November 22 2017

VietNamNews

VN Index falls on intraday selling

Update: October, 21/2017 - 01:00
Investors at VNDirect Securities Company in Hà Nội. — Photo tinnhanhchungkhoan.vn
Viet Nam News

HÀ NỘI — Shares declined on the HCM Stock Exchange on Friday as investor confidence weakened towards the end of the session, resulting in the decline of large-cap stocks.

The benchmark VN Index edged down 0.25 per cent to close at 826.84 points, retreating from its intraday growth of 0.55 per cent.

The benchmark index also stepped back from a 0.15 per cent gain made on Thursday. It advanced total 0.7 per cent over the week.

The market breadth was quite positive with 178 declining stocks, nearly double the number of gaining ones.

The imbalance between gaining and declining stocks suggested investor confidence was quite poor and selling pressure was high, according to Bảo Việt Securities Co (BVSC).

More than 196 million shares were traded on the southern bourse, worth VNĐ4.76 trillion (US$211.7 million).

The trading figures were up 16 per cent in both volume and value compared to Thursday’s numbers.

BVSC analyst Trần Xuân Bách said in the company’s daily report that the VN Index closed down slightly in the last trading session of the week as selling pressure rose when the session was ending.

Selling pressure dominated the stock market and investors became more cautious with the market trading condition, especially when the VN Index was mainly driven by large-cap stocks, he said.

Selling in large-cap stocks may rise in the short-term if investor confidence remained weak in coming days, making the VN Index break its supportive ranges, Bách added.

Blue-chip stocks underperformed on Friday as the VN30 Index, which tracks the performance of the top 30 companies by market capitalisation and trading liquidity, fell 0.42 per cent.

In the VN30 basket, two-thirds of the 30 top stocks declined while only nine advanced.

Among declining stocks were Thành Thành Công Tây Ninh Sugar Co (SBT), digital retailer Mobile World (MWG), brewer Sabeco (SAB), logistics firm Gemadept (GMD) and DHG Pharmaceutical Co (DHG).

MWG dropped 3.4 per cent from its six-day rally of total 8 per cent. DHG lost 2 per cent after announcing its pre-tax profit in the past quarter fell 17 per cent year on year to VNĐ144.3 billion.

“The VN Index could fall further in early sessions next week,” Bách said, adding that the nearest short-term supportive range for the benchmark index is between 819 and 824 points.

On the Hà Nội Stock Exchange, the HNX Index slumped 0.86 per cent to end at 108.14 points, totaling a three-day decline of 1.5 per cent.

The northern market index also erased all gains made in the first two sessions, closing down 0.9 per cent after one trading week.

Nearly 43.6 million shares were traded on the northern bourse, worth VNĐ479.8 billion. — VNS

 

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