Market grows slower despite good global news

Wednesday, Nov 06, 2019 07:25

Cows are milked at a cattle farm in Vinh Phuc Province's Vinh Tuong District and the milk transported to the Vietnam Dairy Products JSC (Vinamilk). The company stock was among large-caps that fell on Tuesday. – VNA/VNS Photo Vu Sinh

Vietnamese shares made slight gains Tuesday despite good signals from the global markets as investors looked to lock in stocks’ recent profits.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange rose 0.19 per cent to close at 1,024.34 points after gaining as much as 0.40 per cent during the day.

The benchmark index rose by a total of 2.36 per cent in the previous two trading days to beat the landmark of 1,011 points, which was last breached in mid-March.

The market breadth was negative with 170 declining stocks and 161 gainers while nearly 200 million shares were traded on the southern bourse, worth VND4.56 trillion (US$196 million).

The movement of the Vietnamese market did not comply with Asian stocks, which continued growing Tuesday after both the US and China showed willingness to resolve their trade war.

Large-cap stocks were still the main driving factor for the market as the large-cap VN30-Index was up 0.22 per cent.

But large-cap companies, which had boosted the market in the previous two days, declined on Tuesday.

Among those stocks were Vietcombank (VCB), Vingroup (VIC), Vinamilk (VNM), Masan Group (MSN), Military Bank (MBB), Vietinbank (CTG), FPT Corporation (FPT) and Mobile World Investment (MWG).

Leading the market up were Vincom Retail (VRE), Vinhomes (VHM), Bank for Investment and Development of Vietnam (BID), Techcombank (TCB), VPBank (VPB), PetroVietnam Gas (GAS) and Vietjet (VJC).

The banking, insurance, and mining and energy sector indices were the strongest-growing, data on showed.

Mid-cap and small-cap indices also recorded good gains of 0.34 per cent and 0.36 per cent, signalling the capital beginning to seek opportunities in other companies rather than large-caps.

The benchmark VN-Index had approached the resistance of 1,025 points after having rallied in the last three trading days, MB Securities Co (MBS) said in its daily report.

The slower growth of the market indicated selling got stronger when the index was near the 1,025 points, especially when it reached 1,026 points, the company said.

The movement was expected as the VN-Index needed to struggle for some time so it can settle down at the 1,000 points, MBS said.

If the VN-Index was able to move beyond the 1,025 point level, it would head to 1,040-1,045 zone – which was the previous peak in June last year, Sai Gon-Ha Noi Securities Co (SHS) said in a note.

On the Ha Noi Stock Exchange, the HNX-Index inched up 0.10 per cent to end at 106.71 points.

The northern market index increased by a total of 1.34 per cent in the previous two days.

More than 26 million shares were traded on the northern market, worth VND408 billion. – VNS


Comments (0)