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VN shares struggle to stay positive

Update: April, 16/2020 - 18:58

 

An investor at An Bình Securities Co. The Vietnamese market was saved in the last minutes on Thursday amid stronger profit-taking. — Photo tinnhanhchungkhoan.vn

HÀ NỘI — Local shares were buoyed on Thursday amid stronger profit-taking as investors targeted profits from market rallies.

The benchmark VN-Index on the Hồ Chí Minh Stock Exchange gained 0.45 per cent to end at 780.70 points, totalling a four-day rally of 3.0 per cent.

The VN-Index has soared substantially by 18.4 per cent from its three-year low of 659.21 points made on March 24.

The HNX-Index on the Hà Nội Stock Exchange edged up 0.38 per cent to close at 108.75 points.

The northern market index has gained a total of 1.48 per cent in the last two trading days.

Nearly 292 million shares were traded on the two local exchanges, worth VNĐ4.47 trillion (US$190.5 million).

The market breadth was slightly positive with 267 gaining stocks and 239 declining stocks.

With global attention now turned to how governments are fighting COVID-19, the Prime Minister late Wednesday decided to extend the validity of the social distancing measures in 12 localities at high risk of the pandemic, including Hà Nội and HCM City, to at least April 22.

The previous order lasted between April 1 and April 15. Depending on each locality’s condition, the social distancing may be maintained until April 30.

Profit-taking pressure increased at the beginning and persisted towards to the end of the day as investors wanted to cash in on stocks’ rallies, Thành Công Securities Co (TCSC) said in its daily report.

Shares are being differentiated, TCSC said. Strong purchasing aimed at companies’ stocks in the mining and energy, information and technology, rubber and plastics, seafood processing, and healthcare and pharmaceutical sectors.

Oil prices kept declining in the Asia trading and kept boosting local plastic and rubber producers. Brent crude dropped as much as 4.3 per cent to trade at the intraday low of $27.4 a barrel.

Meanwhile, technology firms, healthcare and pharmaceutical companies and some financial firms were attractive for their earnings prospects in the first quarter.

On the other hand, securities firms, machinery and home appliance producers were among the groups that weighed down the market.

The differentiation of stocks resulted in a narrow gain of the large-cap tracker VN30-Index, which edged up 0.52 per cent.

Cash kept flowing into small-cap and mid-cap stocks as investors felt large-caps had run out of momentum.

Mid-cap and small-cap trackers on HoSE gained 1.0 per cent and 0.57 per cent, respectively.

“The VN-Index may head up to 800 points, but the market will have to struggle a lot to reach that level,” TCSC said, adding the market may retreat in the coming days. — VNS

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