HÀ NỘI — Shares fell on the two local markets on Wednesday ahead of the national holiday as large-cap stocks suffered from low investor confidence.

The benchmark VN Index on the HCM Stock Exchange inched down 0.1 per cent to close at 723.22 points. The southern market index gained 0.2 per cent on Tuesday.

The HNX Index on the Hà Nội Stock Exchange dropped 0.5 per cent to end at 90.7 points, reversing from Tuesday’s increase of 0.3 per cent.

The VN Index gained a total of 0.2 per cent in the previous two days and the HNX Index increased a total of 0.4 per cent during the same period.

Market trading liquidity decreased in comparison with Tuesday. More than 265.7 million shares were traded on the two local bourses, worth VNĐ4.26 trillion (US$189.28 million).

Large-cap stocks continued to suffer from investor selling since the start of trading, especially after the VN Index reached the 726 point-mark.

On the VN30 Index, which tracks performance of the 30 largest listed companies by market capitalisation, 24 stocks declined while only six advanced.

Decliners included dairy producer Vinamilk (VNM), Bank for Investment and Development of Việt Nam (BID), property developer Vingroup (VIC) and consumer goods producer Masan Group (MSN).

VNM was down 0.4 per cent, BID dropped 0.3 per cent, VIC lost one per cent and MSN decreased by 2.8 per cent.

Other large companies that also saw their share value decline included insurance-finance Bảo Việt Holdings (BVH), steel maker Hòa Phát Group (HPG), Tân Tạo Investment Industrial JSC (ITA) and Sài Gòn Securities Inc (SSI).

Lower net foreign investment put strong pressure on local stocks. Foreign investors on Wednesday recorded net buy value of VNĐ79.7 billion, a decrease of 69.6 per cent from Tuesday’s figure.

On the positive side, a significant rise in the share value of PetroVietnam Gas (GAS), Vietcombank (VCB), Vietinbank (CTG), brewer Sabeco (SAB) and Faros Construction (ROS) helped support the market.

The VN Index started declining following the first two positive trading sessions of the week, particularly when the benchmark index moved in a narrow range to approach a fresh 10-year high of 725 points, BIDV Securities Corp (BSC) said in a note.

Investor confidence was even lower than it was on Tuesday, BSC said. “The VN Index may maintain this trend in the coming sessions and trigger investors’ offloading stocks to secure their investment portfolios, pushing the benchmark down to lower levels.”

The stock market will be closed on Thursday for a national holiday. — VNS