VN-Index fails to hit 1,000 points as selling increases

Monday, Oct 28, 2019 20:08

The VN-Index corrected while major stock markets in the region made gains. — VNS Photo Doan Tung

The VN-Index failed to hit 1,000 points on Monday as selling increased in the afternoon, causing the index to fall slightly.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange inched down 0.01 per cent to end at 996.48 points.

Nearly 184 million shares were traded on the southern bourse, worth VND3.75 trillion (US$160 million).

The index made a weekly gain of 0.74 per cent last week.

Trading was positive in the morning thanks to blue-chips such as brewery Sabeco (SAB), Bank for Investment and Development (BID), PetroVietnam Gas JSC (GAS), dairy firm Vinamilk (VNM) and Vietinbank (CTG). The rally pushed the index to 999 points.

However, in the afternoon, selling pressure on Vietcombank (VCB), Vinamilk (VNM), Novaland (NVL) and Military Bank (MBB) pushed the index down.

According to BIDV Securities Co (BSC), the index had experienced a correction while most major stock markets in the region posted gains.

The Asia stock market has gained substantially recently with positive progress made in US-China trade negotiations. At market close on Monday, MSCI Asia Pacific ex Japan had increased 0.085 per cent to 517.712 points – the highest closing point since early August.

The Shanghai Composite also gained 0.85 per cent to 2980.05 points.

Hong Kong’s Hang Seng witnessed an increase of 0.84 per cent to 26,891.26 points.

Meanwhile, Japan’s Nikkei 225 was up 0.30 per cent to settle at 22,867.27 points – the highest closing point so far this year.

US-China trade have been making progress. During a high-level teleconference that took place last Friday, both the Office of the US Trade Representative and the Ministry of Commerce of the People’s Republic of China said the US and China were very close to finalising a trade deal.

US President Donald Trump also claimed that he expected to sign a trade deal with Chinese President Xi Jinping at a summit in Chile next month.

According to Bao Viet Securities Co (BVSC), the long-lasting trade war between the US and China had negatively influenced global economic growth and especially the world’s two largest economies. From a business perspective, the trade war had caused anxiety and uncertainty.

Businesses had been cautious about production planning, so if the deal was signed, they were expected to gain more confidence in production and business activities, BVSC said.

Foreign investors bought a net value of VND15.16 billion on the HOSE, including FLC Faros Construction Joint Stock Company (ROS) (VND23.87 billion), Phu Tai Joint Stock Company (PTB) (VND23.06 billion) and Hoa Phat Group (HPG) (VND18.98 billion). Foreigners were net buyers on the HNX with a value of VND11.12 billion.

On the Ha Noi Stock Exchange, the HNX-Index rose 0.31 per cent to close at 105.04 points.

The northern index dropped 0.73 per cent last week.

BSC said in its report that the VN-Index would be struggling around the 985-1,000 point range for the next few sessions, especially with the Q3 business report season coming to an end and the market searching for a new driving force. — VNS

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