The VN-Index tapered its gains to 0.2 per cent to close yesterday’s trade at 723.5 points on investor fears of a downward correction after the benchmark index reached a fresh ten-year high.
Some big banks retreated from the morning’s gains and restrained the market overall, such as Military Bank (MBB) dropping 1.3 per cent, BIDV (BID) down 0.8 per cent and Vietcombank (VCB) down 0.5 per cent.
Only Vietinbank (CTG) and Eximbank (EIB) retained growth of 0.5 per cent and 0.9 per cent, respectively.
Overall, the banking sector booked an average loss of 0.3 per cent yesterday.
Losers also included oil and gas stocks with the biggest listings like PV Gas (GAS), PetroVietnam Drilling and Wells Service (PVD) and PetroVietnam Technical Services (PVS) slumping on worries of a downward trend in global oil prices.
“The market is incurring high risk in the short term as the index approached the upper boundary of the resistance zone,” Tran Hai Yen, a stock analyst at Bao Viet Securities Co wrote in a note.
The VN-Index reached a fresh ten-year high of 722.14 points last Friday and has gained 8.8 per cent so far this year.
On the positive end, companies with positive earnings prospects in the first quarter or having received support information still advanced.
Hoang Anh Gia Lai Agriculture Investment JSC (HNG) hit the daily maximum rise of 7 per cent yesterday, settling at VND12,500 (US$0.55) a share, after the Prime Minister approved a credit package worth VND100 trillion ($4.4 billion) to invest in the development of high-tech agriculture and new agricultural enterprises.
Healthcare service companies also posted strong gains yesterday, driven by optimistic earning prospects like DHG Pharmaceutical (DHG), Domesco Medical Import Export (DMC), Imexpharm (IMP) and OPC Pharmaceutical (OPC).
This stock group gained an average 2.63 per cent yesterday.
According to Vietcombank Securities Co, investors bet on stocks with good business forecasts in the first quarter which will likely be announced in the upcoming shareholders’ meeting next months.
On the Ha Noi Stock Exchange, the HNX-Index closed nearly unchanged compared to last Friday at 91.4 points.
Overall liquidity on the two exchanges remained high with a total of 292 million shares worth nearly VND4.9 trillion ($213 million), up 7.4 per cent in volume and 4 per cent in value compared to the daily average levels last week. – VNS