Tuesday, February 18 2020


Insurers pull VN stocks down

Update: April, 02/2016 - 09:00
Investors watch market changes at An Bình Securities’ trading floor. — VNS Photo Việt Thanh

HÀ NỘI  (VNS) — Vietnamese shares extended their losses on both local markets yesterday, led by bank and insurance company declines.

The benchmark VN Index on the HCM Stock Exchange was choppy and fell 0.5 per cent to close at 558.43 points at the end of the day. The southern index has dropped two per cent in the last two trading days.

The HNX Index on the Hà Nội Stock Exchange lost 0.7 per cent to finish at 78.47 points, erasing its gain made earlier during yesterday’s session. The northern index has declined by 2.4 per cent during the last four sessions.

The insurance sector weighed on local markets yesterday. The biggest losses included BIDV Insurance Corporation (BIC), Bảo Việt Holdings (BVH), PVI Holdings (PVI) and Việt Nam National Reinsurance Corporation (VNR). These stocks fell three per cent, 1.6 per cent, 1.7 per cent and 2.2 per cent, respectively.

Local markets were also pulled down by banks. Among those stocks, Sài Gòn-Hà Nội Bank (SHB) and Military Bank (MBB) recorded the biggest losses of 3.1 per cent and 1.4 per cent, respectively.

Other large-cap banks also finished lower, including Vietcombank (VCB), the Bank for Investment and Development of Việt Nam (BID) and Vietinbank (CTG).

In addition, the food and beverage sector was sent down by Masan Group (MSN), which lost another 0.7 per cent from Thursday’s fall after the company announced it would not pay dividends for shareholders despite higher earnings in 2015 compared to 2014.

A pullback in global crude prices also extended losses in energy stocks amidst a global glut and a stronger US dollar.

US crude dropped 0.8 per cent to trade at US$38.03 a barrel and London-traded Brent crude decreased by 0.6 per cent to trade at US$40.07 a barrel after a slight two-day gain.

Among energy stocks, PetroVietnam Drilling and Well Service Corporation (PVD) and PetroVietnam Mud Drilling Corporation (PVC) lost 0.5 per cent and 0.8 per cent, while PetroVietnam Coating Corporation (PVB) slumped 2.7 per cent.

The property sector declined, too, led by FLC Group (FLC) and Tân Tạo Investment Industrial JSC (ITA).

FLC was down 1.6 per cent after the company said it would shut down its branch in the central province of Thanh Hóa, while ITA dropped 2.1 per cent as the company’s net profit fell more than 95 per cent in 2015 after its financial report was audited.

On the positive side, brokerage firms helped markets avoid deeper losses. Sài Gòn Securities Incorporation (SSI) rose 0.5 per cent after the company recorded a net profit of VNĐ851.9 billion ($37.8 million) last year, an increase of 14.4 per cent from 2014, and the Japan-based Daiwa Securities Group Inc registered to buy more than 17.3 million SSI shares.

Both local markets traded more than 178 million shares worth VNĐ2.6 trillion ($115.7 million), a decrease of a quarter from Thursday’s trading value. — VNS


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