Market growth contracts as profit taking weighs on blue chips

Wednesday, Jul 08, 2020 06:51

A Hoa Phat facility in Hai Duong Province. The steel producer's shares (HoSE: HPG) gained 2.7 per cent on Tuesday. — VNA/VNS Photo Danh Lam

Growth slowed on the Vietnamese stock market on Tuesday as some large-caps turned negative on profit-taking following a two-day increase.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange rose 0.26 per cent to end Tuesday at 863.42 points, narrowing gains of as much as 1.1 per cent during the day.

The VN-Index had risen a total of 2.23 per cent in the previous two trading days.

The large-cap tracker VN30-Index increased by 0.28 per cent, contracting from a daily gain of as much as 1.12 per cent, to close Tuesday at 805.68 points.

Meanwhile, the VN30 futures, which mature in July 2020, dropped 0.54 per cent to end the day at 794 points.

Fourteen of the 30 largest stocks by market value and trading liquidity in the VN30 basket advanced but profit-taking weighed on 10 others.

The decliners included VPBank (VPB), consumer staples firm Masan (MSN), Sacombank (STB), property developer Vingroup (VIC) and dairy producer Vinamilk (VNM).

Those stocks were also the large-caps that had driven the market up in the previous two days.

On an industry basis, the brokerage, real estate, and food and beverage were among the worst-performing sectors, according to

On the opposite side, Vietnam Airlines (HVN) gained 1 per cent after its shares were available for margin lending in the third quarter of the year.

Other advancing blue chips included Vietinbank (CTG), Bank for Investment and Development of Vietnam (BID), steel producer Hoa Phat (HPG), tech group FPT (FPT) and shopping centre operator Vincom Retail (VRE).

Mid-caps and small-caps also succumbed to profit-taking. The mid-cap tracker fell 0.41 per cent while the small-cap tracker inched up only 0.02 per cent.

On the Ha Noi Stock Exchange, the minor HNX-Index gained 0.56 per cent to end Tuesday at 113.71 points, extending its growth to 1.94 per cent in two days.

More than 367.3 million shares were traded on the two local exchanges, worth nearly VND6.1 trillion (US$262 million).

Foreign investors net-bought VND50.2 billion worth of local shares, up 128 per cent from the previous day.

The market advanced for the third day in a row but growth was narrowed at the resistance level of 870 points, Sai Gon-Ha Noi Securities (SHS) said in its daily report.

Increased liquidity amid stronger profit taking pressure was a bad navigator for the stock market in the short term, the brokerage company said.

The gap of 11.68 points between the blue-chip tracker VN30-Index and its July futures indicated overall pessimism about the market’s short-term prospects, SHS said. — VNS

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