Stocks retreat from three-day rally

Saturday, Jul 15, 2017 08:00

Investors at Sai Gon-Ha Noi Securities Company. — Photo

Shares fell on both local markets on Friday, ending a three-day rise as investors increased selling to lock in short-term profits for their portfolios.

The benchmark VN Index on the HCM Stock Exchange inched down 0.09 per cent to close at 777.60 points.

The HNX Index on the Ha Noi Stock Exchange dropped 0.33 per cent to end at 100.43 points.

Friday’s declines also ended a rally on both local bourses with the VN Index advancing total 1.5 per cent in the previous three sessions and the HNX Index going up 0.4 per cent.

Friday’s session also closed a volatile trading week for both local indices. The VN Index posted a weekly gain of 0.2 per cent while the HNX Index fell 1.1 per cent.

More than 272.6 million shares were traded on both local bourses, worth VND4.21 trillion (US$187.4 million).

Friday’s trading figures increased by 4.2 per cent in volume and 1.2 per cent in value compared to Thursday.

Large-stocks’ performance was negative as 17 shares among the 30 largest companies by market capitalisation declined while only nine advanced.

Bank stocks were among the sectors that posted the worst falls on Friday with six of the nine listed banks suffering and only Vietcombank (VCB) inching up 0.1 per cent.

Losers included Sacombank (STB), Vietinbank (CTG), Sai Gon-Ha Noi Bank (SHB) and Asia Commercial Bank (ACB).

The agriculture sector, led by Hoang Anh Gia Lai Group (HAG) and its subsidiary HAGL Agrico (HNG), also fell.

HAG lost 1.7 per cent and HNG was down 1.1 per cent after having risen total 8.6 per cent and 6.2 per cent in the previous three sessions.

Among other large-cap stocks that suffered from profit-taking were dairy producer Vinamilk (VNM), ICT group FPT Corp (FPT) and HCM City Infrastructure Investment (CII).

On the opposite side, shares of pharmaceutical companies traded in positive territory after DHG Pharmaceutical Co (DHG) proposed to its shareholders to approve a lift in the company’s foreign ownership limit. DHG jumped 4.6 per cent.

The benchmark VN Index moved in a narrow margin between 776.88 and 780.65 points and started to decline towards the end of the day when it touched the short-term peak of 780 points, according to BIDV Securities Co (BSC).

The brokerage said in its daily report that large-cap stocks began to suffer from investors’ short-term profit-taking after having risen during the previous three consecutive days.

The market would move sideways in coming sessions between 775 and 780 points, BSC said, adding that there is a chance that the VN Index can break through the level of 780 points if trading liquidity remains positive enough. — VNS

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