|The benchmark VN Index on the HCM Stock Exchange lost 1.6 per cent to close at 568.18 points and the HNX Index on the Ha Noi Stock Exchange dropped 1.3 per cent to end at 78.29 points. — VNS Photo Doan Tung
HA NOI (VNS)— Vietnamese shares yesterday fell sharply on both local exchanges after a three-day rally as investors took profits from recent gains in the biggest stocks.
The benchmark VN Index on the HCM Stock Exchange lost 1.6 per cent to close at 568.18 points and the HNX Index on the Ha Noi Stock Exchange dropped 1.3 per cent to end at 78.29 points.
The southern index had gained 2.6 per cent in the three previous sessions and the northern index had risen 0.7 per cent during that time.
Investors started looking to take profits in the biggest stocks such as Vietcombank and Bao Viet Holdings, which had made big gains in previous sessions.
Among these stocks, Bao Viet Holdings (BVH) fell by 5.7 per cent and was the major factor to make the insurance sector index drop 4.4 per cent yesterday. BVH had gained 7.3 per cent in the previous four days.
The banking sector index declined by 2.9 per cent, led by Vietcombank, which lost 6.4 per cent after it had gained 6.8 per cent in the previous five days. In addition, two other big banks, the Bank for Investment and Development of Vietnam (BIDV) and Vietinbank, also contributed to the decline of the banking sector.
BIDV was down 0.9 per cent after having risen 7.5 per cent in the previous four days and Vietinbank (CTG) dropped 1.6 per cent after it had gained 6.2 per cent in three days.
Meanwhile, local energy firms were also a factor that pulled the market down as they were hurt by decreasing global oil prices.
The US benchmark West Texas Intermediate (WTI) yesterday set a new seven-year low at US$34.78 a barrel, a slight decrease of 0