Thursday, July 19 2018


Profit-taking drives down shares

Update: March, 07/2012 - 09:11


Investors follow transactions at the offices of Bao Viet Securities Co. — VNA/VNS Photo Pham Hau
HA NOI — Heavy profit-taking cut short the rally on both of the nation's stock exchanges yesterday, with the VN-Index declining by 2.67 per cent to close the session at 445.00 points.

Over 154 million shares were traded on the HCM City Stock Exchange, worth nearly VND2.2 trillion (US$104.7 million), but decliners outnumbered advancers by a margin of 152-105. Only six of the 30 stocks included in the VN30 Index posted gains, sending it down 3.15 per cent to 508.41.

Bank shares, which have led recent sessions, declined this morning, with four of the five listed banks bottoming out. Only Military Bank (MBB) closed up, becoming the most-active share on the southern bourse, with 15.8 million changing hands. MBB recently received approval from the State Bank of Viet Nam to sell a stake to military-run telecom Viettal and increase its charter capital by VND1 trillion to VND10 trillion ($476.2 million).

On the Ha Noi Stock Exchange, the HNX-Index closed down by a less dramatic 0.8 per cent to 75.20.

Gainers continued to outnumber losers by 158-146 on the northern bourse, and the volume of trades remained high at over 183 million shares. The value of trades was nearly VND1.65 trillion ($78.6 million).

Habubank (HBB) was again the most-active share nationwide, with over 38 million traded. HBB closed at its ceiling price of VND7,100 per share.

Bao Viet Securities Co analyst Nguyen Xuan Binh predicted this new downturn could be sustained and substantial, but PetroVietnam Securities Co analyst Dao Hong Duong said that investors were likely to disburse some of their money as soon as the market retested a new support level.

"To reduce the risks, small investors might want to priortise high-liquidity stocks like VN30 stocks and bank shares," Duong said.

"In the medium and long term, the upward trend will remain," said VietCapital Securities Co analyst Nguyen Sy Ha.

Foreign investors shifted to being net buyers on both bourses yesterday by a combined margin of about VND132 billion ($6.3 million). Last week foreign investors ran up four sessions as net buyers but finally concluded the week as net sellers after unloading shares heavily last Thursday. — VNS

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