Shares pull back strongly on investors' cautiousness

Monday, Sep 12, 2016 12:21

Stocks retreated from Friday's gains as investors were cautious with new trading regulations and lower oil prices put pressure on energy firms. — Photo

HA NOI (Biz Hub) — Vietnamese shares retreated in the early session as investors adopted a cautious stance to new trading regulations, while a slump in oil prices on Friday pulled energy stocks down.

The benchmark VN Index on the HCM Stock Exchange dropped 1.2 per cent to close at 658.77 points.

The HNX Index on the Ha Noi Stock Exchange fell 0.8 per cent to end at 83.78 points.

Investors remained cautious in the early session as new trading regulations issued by the two local exchanges came into effect today, resulting in low market liquidity.

More than 60.5 million shares were exchanged in the early session, worth VND1.25 trillion (US$55.7 million).

Energy stocks were the worst hit after crude prices plunged on Friday following a four-day rally. They continued to decline during the early session.

US crude was being traded at near $45 per barrel, down 1.7 per cent from Friday and 5.3 per cent after two sessions.

Leading oil stocks such as PetroVietnam Gas Corp (GAS) and PetroVietnam Drilling and Well Services Corp (PVD) lost 1.6 per cent and 3 per cent, respectively.

Leading blue chips fell on foreign selling as foreign investment funds were set to conclude their third-quarter review of portfolios.

Vietcombank (VCB) slumped 3.1 per cent, consumer goods producer Masan Group (MSN) was down 2.3 per cent and steel maker Hoa Phat Group (HPG) decreased by 1.5 per cent. — VNS

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