Markets pulled down by banks

Saturday, Jan 14, 2017 08:45

Investors take part in an auction at the Ha Noi Stock Exchange. — VNA/VNS Photo Tuan Anh

Shares were mixed on the two local exchanges yesterday, but market trading was disappointing as bank and energy stocks fell.

The benchmark VN Index on the HCM Stock Exchange dropped 0.3 per cent to close at 685.06 points, extending losses for a second day.

The HNX Index on the Ha Noi Stock Exchange, on the other hand, ended slightly up at 83.34 per cent. The northern market index fell 0.2 per cent on Thursday.

Both indices finished the week higher than the previous one. The VN Index was up 0.8 per cent and the HNX Index increased by 1.5 per cent.

Market liquidity was modest with about 121.3 million shares being exchanged, worth VND2.32 trillion (US$103 million).

The banking sector continued to perform poorly yesterday with six of the nine listed banks suffering losses.

Among decliners, Vietcombank (VCB) and Sacombank (STB) lost 1.2 per cent and 1 per cent, while Asia Commercial Bank (ACB), MBBank (MBB), Vietinbank (CTG) and BIDV (BID) were down between 0.5 per cent and 1.7 per cent.

The insurance industry was driven down by Bao Viet Holdings (BVH) and Bao Minh Insurance Corp (BMI), which slipped 0.8 per cent and 1.5 per cent. BVH retreated from a two-day increase of 2.8 per cent.

Energy stocks also struggled, with PetroVietnam Gas Corp (GAS), PetroVietnam Drilling and Well Services Corp (PVD) and PetroVietnam Technical Services Corp (PVS) losing 1.5 per cent, 1.4 per cent and 1.1 per cent, respectively.

The decline of energy stocks came after global oil prices fell after two days of gains. Brent crude was down 1 per cent to trade at $55.45 a barrel and US crude dropped 1.1 per cent to trade at $52.44 a barrel. Brent crude and US crude jumped around 4.4 per cent each during the previous two sessions.

On the opposite side, real estate and construction firms and fertiliser producers helped lift the national stock market.

Vingroup (VIC) and Faros Construction Corp (ROS), two large-cap companies in the property and construction industry, rose 0.7 per cent and 0.8 per cent, respectively, while PetroVietnam Fertiliser and Chemical Corp (DPM) added 2.3 per cent.

According to BIDV Securities Corp, the capital is moving from leading stocks to speculative ones.

Market trading may remain weak in the next sessions as investors are showing caution ahead of the Tet (Lunar New Year) holiday. — VNS

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