Friday, February 28 2020


Markets go into correction as blue chips slide after surge

Update: July, 16/2015 - 08:22
On the HCM Stock Exchange, the VN-Index lost nearly 8 points, 1.22 per cent, to close the session at 630.89 points. — Photo vietbao
HA NOI  (VNS) — Both markets went into correction mode yesterday after blue chip stocks lost their shine after recent thriving days.

On the HCM Stock Exchange, the VN-Index lost nearly 8 points, 1.22 per cent, to close the session at 630.89 points. The VN30, which tracks the top 30 shares by market value and liquidity, also dropped over 1 per cent to end at 651.45 points.

Banks, insurers and securities stocks, which were behind the positive momentum in previous rallies, tumbled yesterday. Led by Bao Viet Holdings (BVH), down over 6 per cent, financial stocks like Vietcombank (VCB), Vietinbank (CTG), Eximbank (EIB), Military Bank (MBB), BIDV (BID) and Saigon Securities Inc (SSI) followed, falling between 1-3 per cent.

Few large-cap shares maintained growth. Masan Group (MSN) managed to climb almost 5 per cent and Phu My Fertiliser added 2.5 per cent.

According to analysts at KIS Vietnam Securities Co, profit-taking sales rose substantially, especially in blue chip stocks as the VN-Index approached the resistance benchmark of 640 points.

"In our opinion, profit taking activity will remain strong in the back since many large caps surged into overbought territory and lost their attractive values," analysts wrote in a note.

Sai Gon - Ha Noi Securities Co's analysts also said the past rallies concentrated too much on some leading stocks, which got foreign support, while most other stocks seemed to sit outside of the trend.

"Heavy dependence on certain stocks means more risk of a downward correction when profit taking happens in these stocks at the same time," they said.

Both market volume and value declined slightly yesterday, totaling almost 142 million shares worth VND2.76 trillion (US$126.6 million). Vietinbank (CTG) was the leading stock with nearly 8 million shares traded, falling 3.1 per cent to close at VND22,000 ($1) a share.

On the Ha Noi Stock Exchange, the HNX-Index also lost 1.22 per cent to finish yesterday at 87.66 points. The market condition was negative with just 72 stocks rising, 105 falling and 177 going flat.

Eighteen of the top 20 stocks in terms of volume tumbled, of which FIT Investment Co (FIT) was the most active with 8.8 million shares traded, but slid 3.3 per cent to settle at VND11,700 a share.

Liquidity also dropped 12 per cent in volume and liquidity compared to Tuesday, tallying only 63 million shares traded worth VND779 billion ($35.7 million) by the end of the session.

Foreign investors remained net buyers in the two markets but declined substantially to just over VND19 billion ($872,000) worth of shares. — VNS

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