HÀ NỘI – The benchmark VN-Index declined for a second day yesterday, dropping 0.59 per cent to close trade at 947.64 points.

The southern market index decreased 2.3 per cent in the last two sessions after expanding 13.5 per cent in November.

Investors continued to earn profits in large-cap stocks but increasing demand cushioned many stocks. 16 of the top 30 largest shares by market value and liquidity on the HCM Stock Exchange lost value and 11 advanced.

Declines in big stocks such as Vinamilk (VNM), brewer Sabeco (SAB) and IT giant FPT Corp (FPT) narrowed towards the end of the session with decreases of 0.6-2 per cent each. Meanwhile, VinGroup (VIC), Military Bank (MBB) and Vietinbank (CTG) bounced back from losses to close flat.

However, FLC Faros (ROS) still slumped over 4 per cent.

Many blue chips also recovered in the afternoon trade, including insurer Bảo Việt Holdings (BVH), PetroVietnam Drilling and Well Services (PVD), Sacombank (STB), Tiền Phong Plastic (NTP), of which BVH and PVD were the biggest gainers, up 3.3 per cent and 2.4 per cent, respectively.

According to Quang Vo, an analyst at Viet Dragon Securities Co, the decrease of over 5 points in the VN-Index (0.6 per cent) was not a very bad signal, considering the recent gains of over 10 points per session.

“We think investors may have temporarily earned profits or reduced their margin positions as the market became hotter. Considering that capital in the market has been ample, we found no clear evidence that the market is entering a downtrend,” Vo wrote in a note to clients.

According to Vietnam Investment Securities Co, a positive factor was that demand increased and cushioned the market fall and there was a sign that cash flow gradually ran into mid-cap stocks.

VN-Midcap yesterday inched up 0.2 per cent while the VN30 (tracking the top 30 largest shares by market value and liquidity) was down 0.5 per cent and VNSmall-cap decreased 0.4 per cent.

Many stocks, particularly rubber companies, bucked the market trend and posted gains, including Southern Rubber Industry (CSM), up 3.4 per cent, Đà Nẵng Rubber (DRC), up 2.8 per cent and Sao Vàng Rubber (SRC), up 1.5 per cent.

On the Hà Nội Stock Exchange, the HNX-Index inched up 0.12 per cent to close at 113.37 points after a 3-per-cent decline on Tuesday.

Liquidity remained high with 319.2 million shares, worth a combined VNĐ7.2 trillion (US$316 million), traded on the two markets. – VNS