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Profit-taking stalls rallies on bourses

Update: June, 10/2009 - 00:00

Profit-taking stalls rallies on bourses


HA NOI — The day everyone had expected arrived yesterday on the HCM City Stock Exchange, as massive profit-taking snapped the recent market rally, dragging the VN-Index back down below the 500 mark.

The Index fell 2.92 per cent to end the day at 497.51, ending a seven-day run of gaining sessions. Trading volumes on the two bourses were sky-high with more than 130 million shares traded and marking a 25-per-cent increase over Tuesday’s already busy session. Total value rose to VND3.4 trillion (US$191 million).

Sacombank (STB) units was the most active share during yesterday’s session, with nearly 23 million units traded, following news that it was among the most profitable of the nation’s commercial banks during the first five months of the year.

PetroVietnam Finance (PVF) hit its ceiling price, but other blue chips bottomed out. The day saw decliners outnumbering advancers by 131 to 30.

Au Viet Securities Co Research Director Le Anh Thi predicted that, in the long run, the stock market would continue an uptrend due to the potential growth of the Vietnam economy but it’s coming a normal correction in these days as investors realised profits making the supply to outweight the demand, such as in the yesterday’s session. However, such correction would be short-lived due to the strong interest of investors in the stock market.

Meanwhile, foreign investor transactions were now reduced to an average of 10 per cent of the total transactions value, hence lowering their influence on the stock market. Local investors will continue to lead the uptrend.

In Ha Noi, the HASTC-Index closed the day at 179.73, a decline of 3.46 per cent from Tuesday’s session. Trading value reached VND1.8 trillion ($101 million) on a volume of 49.3 million shares, while foreign investors were net sellers of nearly VND14 billion ($787,000) worth of shares. Decliners outnumbered advancers by 165 to 23 on the northern bourse.

Da Nang Plastics Co (DPC) gained VND1,000 per share on its first day of trading to stand at VND17,600 per share, with 13,100 shares changing hands. Asia Commercial Bank (ACB) was the most active share, with more than 10.49 million units traded. — VNS

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