City drops off despite early gains

Update: July, 24/2014 - 08:38
Investors follow securities markets at the Ha Noi-based Bao Viet Securities Company. The VN-Index saw a reduction yesterday while the HNX Index gained. — VNS Photo Viet Thanh

HA NOI  (VNS) —  Stocks failed to sustain gains on the HCM City Stock Exchange yesterday afternoon despite opening high with the benchmark VN-Index down 0.08 per cent to close at 597.50 points.

The market condition was neutral with advancers equal to decliners by 101, while the remaining 102 codes closed flat.

Blue chips were mixed. Some regained value, including Military Bank (MBB), Vietcombank (VCB), HCM City Infrastructure Investment Co (CII) and PetroVietnam Drilling & Well Services Corp (PVD) but others sank into the red.

The VN30, tracking the top 30 shares by market value and liquidity, dropped 0.17 per cent to end at 640.84 points.

Trading declined significantly from the previous session. Both market volume and value fell 40 per cent to a one-month low, totaling 65.4 million shares. Fund certificates totalled VND1.087 trillion (US$51.5 million).

There was a sharp decline in FLC Group (FLC) shares with trading volume at 1.7 million shares yesterday. This marked a significant drop compared with the average of 14 million, valued at VND173 billion ($8.2 million) per session this month. Trading on FLC accounted for more than 13 per cent of total market volume and 10 per cent of total market value on the HCM City exchange.

Improved earnings in the second quarter saw telecoms giant Viet-Han Corp (VHG) propelled to the most active code with more than 5 million shares traded before shares tumbled 3.8 per cent to close at VND10,200 per share.

VHG posted a net profit of VND24.45 billion ($1.2 million) during the March to June period, more than five times the previous quarter's profit of VND4.3 billion ($205,000), but down 62 per cent compared with the same period last year.

According to analysts at FPT Securities Co, interests in equity assets weakened after the primary bourse jumped to a three-month high ahead of the release of July economic data and earnings reports.

By contrast, the HNX-Index had a late recovery, ending up 0.11 per cent at 80.34 points.

Trading was sluggish, with market volume down 15 per cent to 38.4 million shares, worth nearly VND446 billion ($21.1 million), down 20 per cent in value against the previous day.

Sai Gon Thuong Tin Real Estate Co (SCR) was the most active code on total trades of nearly 7 million shares traded, sinking 3.33 per cent to end at VND8,700.

Foreign investors were net buyers on both markets, picking shares worth total VND22 billion ($1 million). — VNS