HÀ NỘI — Shares dropped on both local markets on Monday as investors switched investments from large-cap stocks to mid- and small-cap ones, putting blue chips into negative territory.

The benchmark VN Index on the HCM Stock Exchange inched down 0.16 per cent to close at 718.86 points. Việt Nam’s key index has lost total 0.4 per cent after the last two sessions.

The HNX Index on the Hà Nội Stock Exchange fell 0.65 per cent to end at 89.13 points, retreating from a gain of 0.2 per cent made on Friday.

Market trading liquidity improved from the previous session. More than 277 million shares were traded on both local bourses, worth VNĐ5.85 trillion (US$260.2 million).

Low investor confidence sent large-cap stocks down with two-thirds of the largest 30 companies by market capitalisation falling.

Among the 10 largest listed firms, FLC Faros Construction (ROS) lost 0.9 per cent, dairy producer Vinamilk (VNM) was down 0.5 per cent, and Vietcombank (VCB) decreased by 1 per cent.

Other large-cap stocks that declined were Tiền Phong Plastic (NTP), Asia Commercial Bank (ACB) and Sài Gòn-Hà Nội Bank (SHB), which slid between 1.1 per cent and 4.1 per cent.

The two largest agriculture and farming companies, Hoàng Anh Gia Lai (HAG) and its subsidiary Hoàng Anh Gia Lai Agriculture International (HNG) dipped 6.6 per cent and 6.8 per cent, respectively.

The stocks of both companies were put on the designated list and the decision will come into effect on May 12 as the two firms have reported a loss of VNĐ1.1 trillion for Hoang Anh Gia Lai and VNĐ984.8 billion for its agriculture arm.

The energy sector finished down on Monday as global oil prices reversed to trade around the reference price levels after remaining positive in the morning.

Brent crude inched up 0.1 per cent to trade at $49.15 a barrel, erasing the gains made in the earlier half of the day as investors and analysts were kept waiting on hopes for a prolonged output cut agreement between the Organisation of Petroleum Exporting Countries (OPEC) and other large exporters.

On the positive side, mid-cap and small-cap stocks, especially real estate firms’ shares, proved a safe haven for short-term investors.

Shares of property developers became attractive to investors as they were ahead of companies that are about to pay dividends in cash and bright prospects for the domestic real estate market.

The benchmark VN Index fell for a second day as it attempted to test the lower support levels, Sài Gòn-Hà Nội Securities (SHS) said in its report.

However, Monday’s fall was not something that investors should worry about as strong demand and purchases for low-valued stocks remained strong, SHS said.

The current conditions suggest that the VN Index would fall back to the range of 715 and 718 points before recovering and approaching the challenging level of 720 points, the northern brokerage firm added. — VNS