Việt Nam’s benchmark VN Index retreated from a two-day increase as large-cap stocks were brought down by profit-taking pressure.
Vietnamese shares rose for a second session on Wednesday on both local exchanges with investors picking up stocks on expectations of future market prospects.
Vietnamese shares bounced back from a three-day losing streak on Monday as investor confidence rebounded on banks’ six-month results and a lower chance of margin-call risk.
Sài Gòn Thương Tín Commercial Joint Stock Bank (Sacombank) reported pre-tax profit of VNĐ428 billion (US$18.9 million) in the first half of 2017, a year-on-year increase of 70.4 per cent.
Việt Nam Prosperity Joint Stock Commercial Bank (VPBank), once listed, will become the largest private bank on the HCM Stock Exchange (HOSE).
Shares slowed their decline yesterday as banks recovered, but the market is still exposed to short-term downward corrections on rising investor caution.
Inter-bank lending interest rates have slipped to an eight-month low in the wake of the central bank’s recent policy rate cut.
Mixed share performance is expected this week and market sentiment is forecast to remain weak before companies release their second-quarter earnings reports.
Commercial banks have performed well in the first half of 2017 (H1), and business results show that many have already met more than half their annual profit targets.
Shares fell on both local markets on Friday, ending a three-day rise as investors increased selling to lock in short-term profits for their portfolios.