Market growth slows on rising caution

Update: August, 04/2017 - 09:00
Hà Nội Stock Exchange staff. The HNX-Index picked up 0.46 per cent to end at 101.44 points yesterday. — VNA/VNS Photo Tuấn Anh
Viet Nam News

HÀ NỘI — Shares slowed growth in Thursday afternoon trade on rising investor caution when the benchmark VN-Index touched short-term resistance.

The VN-Index on the HCM Stock Exchange retreated below 790 points recorded in the morning but still edged up 0.29 per cent to close at 788.49 points.

Some large-cap stocks declined and restrained the market uptrend.

Fifteen of the top 30 largest shares by market value and liquidity gained value, fewer than 21 in the morning, while seven tumbled.

“The VN-Index retained the level of 790 points in a fairly short time and lost points early in the afternoon session, which showed the cash flow was quite cautious in this area,” market analysts at BIDV Securities Co (BSC) wrote in Thursday’s note.

Sacombank lost the morning gain and dropped 2 per cent in afternoon trade, settling at VNĐ12,300 (US$0.54) a share, its third decline following the detention of two of its former bankers, with a total decrease of 6.2 per cent over three sessions.

The bank posted pre-tax combined profits of VNĐ754 billion ($33.2 million) in the first seven months of this year, up 29 per cent over the target set for the whole year.

However, other banks recovered. Eximbank (EIB) increased 4.8 per cent while BIDV (BID) and Vietcombank (VCB) ticked up 2 per cent and 0.5 per cent, respectively. Military Bank (MBB) and Vietinbank (CTG) bounced back to their reference prices.

Gainers also included Vinamilk (VNM), Masan Group (MSN), FPT Corp (FPT), Mobile World Group (MWG) and PetroVietnam Drilling and Wells Service (PVD).

On the defensive side, insurer Bảo Việt Holdings (BDVH), brewery Sabeco (SAB) and Hậu Giang Pharmaceutical (DHG) slumped.

BSC predicts the market may trade around 785-788 points and continue to test the resistance of 790 points in the next few sessions.

On the Hà Nội Stock Exchange, the HNX-Index picked up 0.46 per cent to end at 101.44 points.

A total of 285.4 million shares worth VNĐ5 trillion ($220.3 million) were traded in the two markets, down 4.2 per cent in volume but up 5.3 per cent in value compared to the previous session.

Foreign investors kept positive trading on the HCM City market, with an 11th net buying session for a value of VNĐ162 billion, up 10.7 per cent over the previous trade. They concluded as net sellers for a third day on the Hà Nội’s exchange for VNĐ1 billion, almost half of Wednesday’s value. — VNS