VN Index ends four-day decline

Wednesday, May 25, 2016 08:16

An investor watches market movements at BIDV Securities Corp. The VN Index yesterday cut a four-day decline, however, investor confidence remained low as markets lacked supporting information. — VNS Photo Truong Vi
HA NOI (Biz Hub) — Vietnamese shares ended with mixed results on the two local exchanges yesterday while investors remained cautious as local markets lacked supporting information.

The benchmark VN Index on the HCM Stock Exchange struggled to inch up 0.1 per cent to finish at 611.62 points, putting a dent to a four-day decline of 2.2 per cent.

However, the HNX Index on the Ha Noi Stock Exchange ended slightly lower at 81.26 points, maintaining a loss of 1.1 per cent for a fifth day.

"Investors remained cautious as they saw little supporting information on the markets and investors' demand for recently-declining stocks was not high," Bao Viet Securities Corp (BVSC) wrote in its daily report.

Investors remained cautious after the possibility of a US interest rate increase next month became firm following recent statements made by the US central bank's officials.

The concern over the interest rate increase has strengthened the US dollar against other currencies on global markets recently and forced local central banks, including Viet Nam's central bank, to weaken their currencies to keep foreign investors in local markets.

Yesterday, the daily reference mid-point rate set by the central bank for commercial banks' trading between the dollar and the Vietnamese dong decreased by VND3 to VND21,910 for a dollar.

The mid-point rate has remained high amid fears the US central bank will make its first rate hike since December in June.

Additionally, the Consumer Price Index (CPI) for May added 0.5 per cent to that of April. The increased CPI may generate inflation this year and prevent the central bank from lowering the lending rate for local companies, BVSC said.

Out of 20 sectors, energy and insurance sectors were the major factors helping lift the markets.

The energy sector was driven up by PetroVietnam Mud Drilling Corp (PVC), PetroVietnam Drilling and Well Service Corp (PVD) and PetroVietnam Technical Service Corp (PVS).

PVS gained 1.1 per cent, PVC 2.2 per cent and PVD 2.5 per cent.

Other large-cap stocks such as insurer Bao Viet Holdings (BVH), consumer goods producer Masan Group (MSN), Vietinbank (CTG) and Kim Long Securities Corp (KLS) also made gains.

On the opposite side, dairy firm Vinamilk (VNM), Vietcombank (VCB), Sai Gon-Ha Noi Bank (SHB) and Tien Phong Plastic JSC (NTP) continued to weigh on both exchanges. These stocks lost between 0.2 per cent and 1.5 per cent.

Both local exchanges traded more than 150 million shares worth VND2.56 trillion (US$113.8 million), an increase of one-tenth from the previous session. — VNS

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