VN Index struggles to maintain growth

March 08, 2017 - 01:00
Investors at a trading centre of MB Securities Company. The VN Index moved sideways yesterday on low investor confidence. — VNS Photo Trương Vị
Viet Nam News

HÀ NỘI — The VN-Index on the HCM Stock Exchange closed almost flat yesterday on investor caution over a possible lending rate increase by the US central bank and exchange-traded funds’ portfolio review.

The benchmark index was up 0.03 per cent to end at 716.54 points, near the february 22 nine-year peak of 717.24. It has gained 1.3 per cent in the last three trading days.

Market trading liquidity rose compared to Monday with more than 195.6 million shares being exchanged, worth VNĐ3.82 trillion (US$169.8 million).

Foreign investors turned to net sellers, recording a net sell value of VNĐ106.2 billion compared to a net buy value of VNĐ19 billion on Monday.

Among the top 10 largest listed companies, dairy producer Vinamilk (VNM), HCM City-based brewer Sabeco (SAB), Vietinbank (CTG) and Bank for Investment and Development of Việt Nam (BID) were decliners.

VNM fell 0.7 per cent, SAB lost 0.8 per cent, CTG edged down 0.5 per cent and BID decreased by 0.6 per cent. Smaller groups such as rubber and plastic producers also dropped from their closing levels on Monday. Binh Minh Plastic JSC (BMP) was down 0.5 per cent, Da Nang Rubber JSC (DRC) declined by 0.7 per cent and Phuoc Hoa Rubber JSC (PHR) shed 1.8 per cent.

Some of the energy, property and construction stocks maintained their positive trends to lift the market. Faros Construction Corp (ROS) and Hoa Binh Construction and Real Estate Corp (HBC) rose 2.9 per cent and 1.4 per cent, respectively.

The energy sector was boosted by PetroVietnam Drilling and Well Services Corp (PVD), which gained 2.1 per cent following the rise of crude prices.

Investor confidence is low due to lack of good business news to advance further, resulting in the mixed performance of blue chips, BIDV Securities Corp (BSC) said in its report.

The VN-Index may not surpass the 720-point level in the short term and could go sideways, the Hà Nội -based brokerage firm added.

Investors should be cautious and wait for macro-economic news to become public, such as the ETFs’ investment portfolio reviews and the US Fed’s meeting to decide whether its lending rates should be increased, BSC advised.

On the Hà Nội Stock Exchange, the HNX Index inched up 0.2 per cent to finish at 86.7 points, reversing Monday’s 0.1 per cent decline.

Nearly 54.5 million shares were traded on the northern bourse, worth nearly VNĐ 496 billion. — VNS