Investors watch transactions at Ocean SecuritiesCompany in Hà Nội. — VNA/VNS Photo Trần Việt
HÀ NỘI – The local stock market underwent a downward correction yesterday as investors increased selling pressure to seek short-term cash profits following a 10-year peak.
The benchmark VN-Index lost value in the last trading minute, falling off the 10-year peak recorded Friday, closed down 0.47 per cent at 797.47 points.
The market breadth on the HCM Stock Exchange was negative with 189 stocks declining, 29 rising and 75 closing flat.
Large-cap shares were also on the defensive with 21 of the top 30 largest shares by market value and liquidity (VN30) losing value and only seven advancing. Top shares, such as Vietnam Prosperity Bank (VPB), Military Bank (MBB), real estate giant VinGroup (VIC), PV Gas (GAS), confectionery Kido Group (KDC), steelmakers Hòa Phát Group (HPG) and Hoa Sen Group (HSG) dropped between 1.9 per cent and 3.1 per cent, each.
Brewer Sabeco (SAB), insurer Bảo Việt Holdings (BCH), private equity Masan Group (MSN), FLC Faros Construction (ROS) and budget airline Vietjet (VJC) slowed last week’s growth and failed to lift the market.
“Profit-taking pressure will remain high in the next sessions after a streak of gains of the VN-Index over the past three weeks,” said Trần Đức Anh, a stock analyst at Bảo Việt Securities Co.
The key market index has expanded about 4.2 per cent in the last three weeks.
Anh predicted some large-cap stocks would continue to rise but the rally will not be strong enough to support the overall market.
According to Nguyễn Hồng Điệp, director of the Sài Gòn-Hà Nội Securities Co’s HCM City branch, the market could see a short-term correction but it would not be long and serious.
Điệp said the market rally was driven by growth of some major large-cap stocks while a majority of the market has not been on the same rising wave. This phenomenon was part of investors’ anxiety about the market outlook, which is often volatile in the exchange-traded funds’ portflio restructuring period.
However, the 800 point landmark did not indicate a market downturn and the achievement would motivate the market to go further, Điệp was quoted as saying on vietstock.vn.
On the Hà Nội Stock Exchange, the HNX-Index also dropped 0.99 per cent to end yesterday at 102.89 points.
Liquidity rose slightly, totaling 195 million shares worth VNĐ4.2 trillion (US$185 million) on the two exchanges. – VNS