Việt Nam News

Shares dropped further on Thursday, pressured by the slump of large-cap stocks that were hit strongly during the last minutes of the session by increased profit-taking.

Shareholders are now focusing on news about bank dividends, especially as banks have been doing well throughout the past year despite the COVID-19 pandemic.

Low capitalisation levels are likely to remain a credit weakness for rated Vietnamese banks as rapid loan growth will make it challenging to raise capital adequacy ratios (CARs) in the next two to three years, according to Fitch Ratings.

Shares had a good start on Monday thanks to the growth of real estate and insurance stocks.

Việt Nam’s benchmark VN-Index remained in positive territory on Thursday but divergence widened among blue chips while some investors sought to seek profits in small-cap shares.

Shares rose for a second day this week but liquidity continued to decline, showing investor scepticism about the market outlook in the short term.

Experts said a law on bad debt settlement should be put in place before two regulations expire in six months.

Shares opened the new week in positive zone but the market diverged as investors remained cautious about the market outlook in the short term.

Shares bounced back on the Hồ Chí Minh Stock Exchange on Thursday with the VN-Index rising 1.06 per cent to close at 1,507.99 points. Liquidity remained low, however, raising concerns of a “bull-trap”.