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| Investors at BIDV Securities Company's trading floor. The VN-Index inched down just 0.1 per cent to close yesterday's session at 572.7 points. — VNS Photo Truong Vi |
HA NOI (Biz Hub) — Shares reversed the morning loss in the afternoon on the Ha Noi Stock Exchange. The HNX-Index added another 0.2 per cent to close at 78.5 points. This was its sixth rising day with a cumulative 2.4 per cent rise.
"The rally of the northern bourse came as a surprise as it stayed in negative territory most of trading time," FPT Securities Co's analysts wrote on the company's website.
The bounce was driven by heavyweight stocks like insurer PVI Holdings (PVI), Vietnam Construction and Import Export (VCG) and PetroVietnam Technical Services Corporation (PVS) which climbed 3.8 per cent each.
Overall market condition was negative as decliners outnumbered advancers by 92-78 and the other 198 closed unchanged.
Liquidity also declined, totaling 32.7 million shares worth VND378.2 billion (US$16.8 million), down around 30 per cent in both volume and value compared with Tuesday's levels.
According to analysts at Investment Vietnam Securities Co, profit-taking selling pressure began to increase, sending a signal of a potential correction.
On the HCM Stock Exchange, the VN-Index inched down just 0.1 per cent to close yesterday's session at 572.7 points as large-cap stocks slumped after three rising days while continuous net selling by foreign investors continued to concern the domestic market.
The index rose 2 per cent in the previous three sessions. The losers outnumbered the gainers here by 109-95 and the other 76 closed unchanged.
Half of the top 30 shares by market value and liquidity fell, including the biggest weighting stocks like dairy giant Vinamilk (VNM), VinGroup (VIC), Vietcombank (VCB), BIDV (BID), Sacombank (STB) and Masan Group (MSN).
On the other end of spectrum, oil and gas companies helped cushion the market as most shares of this group climbed following recovery in global oil price. The West Texas Intermediate (WTI) oil rose 0.84 per cent while Brent crude oil increased 0.63 per cent.
PV Gas (GAS), the third largest stock by market value and accounting for 8.3 per cent of the market weighting, advanced 1.3 per cent. Others, including PetroVietnam Drilling and Wells Service (PVD) and PetroVietnam Low Pressure Gas Distribution (PGD), also rose by more than 1 per cent.
Overall market volume dropped 11 per cent from Tuesday, totaling almost 108 million shares, but trading value increased slightly to VND1.88 trillion ($83.6 million). These figures were lower than the average of 134.8 million shares and VND2 trillion ($88.9 million) seen in June-August.
The foreign sector raised its net sell value yesterday on both markets, unloading shares worth a combined VND386 billion ($17.2 million), the highest in a single day since the beginning of the year. They sold a net value of almost VND522 billion ($23.2 million) in the past four days.
According to many experts, foreign investors are tending to sell out due to bad investment results. The two foreign exchange-traded funds in Viet Nam, FTSE and Market Vectors Vietnam (VNM), incurred losses of 8.5 per cent and 10.6 per cent, respectively this year. Besides, their gradual divestment could be the preparation for the potential move of raising interest rates from the US Federal Reserve. — VNS