Shares erase early gains due to profit-taking pressure

Tuesday, Aug 11, 2020 07:04

Workers of PV Power operate equipment. Shares of PV Power rose 2.8 per cent on Monday. — VNA/VNS Photo Huy Hung

Shares cut early gains on Monday as profit-taking pressure increased strongly when the VN-Index was approaching 850 points.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange rose 0.21 per cent to end Monday's session at 843.20 points.

Nearly 309.3 million shares were traded on the southern exchange, worth VND4.9 trillion (US$210.4 million).

The market recovered from two slumps on July 24 and 27, which pushed the VN-Index down to 785 points, as investors were motivated by the efforts of the Government to put COVID-19 under control soon, Vu Minh Duc, director of market research and analysis at VietCapital Securities Corp, said.

Since July 27, the VN-Index has gained a total of 7.17 per cent in two weeks.

Market breadth was positive with 274 gainers and 117 decliners.

The morning session witnessed positive trading with the VN-Index closing up 0.65 per cent. Blue-chips like insurers Bao Viet Holdings (BVH), FPT Corporation (FPT), PV Power (POW), PetroVietnam Gas JSC (GAS), Masan Group (MSN), steel maker Hoa Phat Group (HPG), Vingroup (VIC) and Mobile World Group (MWG) all climbed.

Bank stocks, including Asia Commercial Bank (ACB), Vietinbank (CTG), Military Bank (MBB), VPBank (VPB), Bank for Investment and Development (BID) and Techcombank (TCB) increased strongly and were the main driver of market’s rally in the morning session.

The industrial real estate group also outperformed with gainers being Sonadezi Long Thanh (SZL), SONADEZI Chau Duc Shareholding Company (SZC), Industrial Urban Development JSC No 2 (D2D), Investment and Industrial Development (BCM), Kinh Bac City Development Share Holding Corporation (KBC) and Long Hau Corporation (LHG).

In the afternoon session, profit-taking pressure increased strongly when VN-Index was approaching 850 points. Many blue-chips have narrowed their rise such as FPT Corporation (FPT), Masan Group (MSN), steel maker Hoa Phat Group (HPG), Mobile World Group (MWG), Phu Nhuan Jewelry (PNJ), Vincom Retail (VRE).

Many large-cap stocks even reversed and dropped, including Refrigeration Electrical Engineering Corporation (REE), Vietcombank (VCB), Vinamilk (VNM) and Coteccons Construction (CTD).

Stocks in the banking groups, retail, securities, real estate and construction also suffered profit-taking pressure and narrowed the uptrend in the final minutes of trading.

The blue-chip index VN30, which tracks the performance of the 30 largest stocks by market capitalisation and liquidity on HoSE, gained 0.27 per cent to 784.30 points.

Twenty of the 30 largest stocks by market capitalisation and trading liquidity in the large-cap basket increased while seven declined.

On the Ha Noi Stock Exchange, the HNX-Index went up 0.77 per cent to end Monday at 113.64 points.

Nearly 55.8 million shares were traded on the two exchanges, worth VND595 trillion. — VNS

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