Market extends loss for a fourth day as stronger selloff shadows bargain hunting power

Friday, Oct 30, 2020 07:06

A Vietinbank office in Bo De Commune, Long Bien District, Ha Noi. The lender's shares fell 2.7 per cent on Thursday. — VNA/VNS Photo Tran Viet

Vietnamese shares extended losses for a fourth day on Thursday as investors still tried finding ways to cash in on the market’s previous rally.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange dropped 0.21 per cent to 919.08 points, erasing its early gain of as much as 0.52 per cent propelled by bargain hunters.

The index on Wednesday posted its worst decline since July 29, diving 2.69 per cent or 25.42 points to 921.05 points.

The benchmark has lost a total of 4.39 per cent after the last four trading days.

Blue chips kept dragging the market down. The large-cap tracker VN30-Index slid 0.25 per cent to 886.68 points.

The VN30 futures due on November 19 fell 0.94 per cent on Thursday to 887.50 points, indicating investors were quite pessimistic about the outlook of the market.

Fourteen of the 30 largest stocks by market capitalisation and trading liquidity declined while 14 others increased and two ended flat.

Among the decliners were Vietinbank (CTG), Techcombank (TCB), retailer Mobile World Investment (MWG), consumer firm Masan (MSN), and aviation company Vietjet (VJC).

Vietinbank has reported its net revenue rose 9 per cent on-year to more than VND9 trillion but post-tax profit dropped 7 per cent on-year to VND2.34 trillion.

In its financial report, Vietinbank announced risk provision in the past quarter jumped 39 per cent on-year to VND4.86 trillion.

After nine months, Vietinbank posted a 3 per cent annual increase in total revenue, which reached VND25.3 trillion.

Post-tax profit in the first three quarters gained 23 per cent on-year to VND10.3 trillion.

Vietinbank shares (CTG) dropped 2.7 per cent to VND29,100 apiece.

Techcombank shares (TCB) also lost 2.7 per cent on Thursday to VND21,800 apiece and topped the market’s most-active-stock chart with more than 36 million shares traded.

On the other hand, strong purchasing power into mid-cap and small-cap stocks lifted the two trackers up 0.52 per cent and 0.43 per cent, respectively.

On the Ha Noi Stock Exchange, the HNX-Index rose 0.25 per cent to 134.37 points on Thursday.

The northern market recovered from a 2.25 per cent drop on Wednesday.

More than 482 million shares were traded on the two exchanges, worth VND8.62 trillion.

Selling weakened on Thursday to help limit the market loss but investors remained quite cautious with current conditions, Thanh Cong Securities Co (TCSC) said in its daily report.

The market would still have to settle at the threshold of 940 points before making further growth, the company forecast. — VNS

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