Shares drop on increased profit-taking

Wednesday, Feb 22, 2023 06:49

An SSI Securities Inc (SSI)'s branch in HCM City. SSI lost 1.4 per cent yesterday. — Photo courtesy of SSI

Shares reversed to drop on Tuesday, pressured by the slump of large-cap stocks that were hit strongly during the last minutes of the session by increased profit-taking.

On the Ho Chi Minh Stock Exchange (HoSE), the market benchmark VN-Index dropped 0.41 per cent, to 1,082.23 points.

The market's breadth was negative with 182 gainers and 234 losers.

During the session, nearly 720.3 million shares were traded on the southern bourse, worth over VND11.9 trillion (US$502.1 million).

Temporarily, it is still necessary to consider the possibility of being blocked at the resistance zone of 1,090 - 1,100 points of the VN-Index, said Viet Dragon Securities Co (VDSC).

“In the short term, the market may temporarily fluctuate strongly at 1,065 – 1,100 points before having more specific signals. Therefore, investors need to pay attention to the supply pressure at the resistance area and wait for the probe signal to be able to assess the next movement of the market.

“Temporarily avoid chasing buying and overbought status, maybe consider taking profit or restructure the portfolio in the direction of reducing risk when the market enters the resistance zone.”

“It is expected that the shaking movement will occur alternately in the recovery spans when the VN-Index gradually moves to the resistance area of 1,090-1,120 points,” said VDSC.

Therefore, investors can continue to expect the current recovery of the market. For the time being, it is still advisable to maintain a reasonable proportion of stocks in the portfolio because the market is approaching the old resistance zone, according to VDSC.

The benchmark's downtrend on Tuesday was due to losses of many large-cap stocks. The VN30-Index, which tracks the 30 biggest stocks on HoSE, fell 0.59 per cent, to 1,080.90 points.

Of the VN30 basket, 18 stocks slid, while nine inched higher and three ended flat.

In the VN-30 basket, the worst performers included The Viet Nam Rubber Group (GVR), FPT Corporation (FPT), Masan Group (MSN, Hoa Phat Group (HPG), Vietjet (VJC), Vinamilk (VNM) and PVPower (POW).

Banking-financial stocks also performed poorly, with losers being Vietinbank (CTG), Military Bank (MBB), Sacombank (STB), VPBank (VPB), Asia Commercial Bank (ACB), Bank for Investment and Development of Vietnam (BID) and SSI Securities Inc (SSI).

But there were still two gainers of Vietcombank (VCB) and Techcombank (TCB).

On the Ha Noi Stock Exchange (HNX), meanwhile, the HNX-Index lost 0.81 per cent to end at 214.08 points.

During the trading session, investors poured more than VND1.3 trillion into the bourse, equivalent to a trading volume of more than 79.2 million shares. — VNS

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