VN-Index retreats for second day

Saturday, Feb 25, 2017 09:30

An investor watches stock fluctuations at a securities trading floor. — VNA/VNS Photo doanhnhansaigon.vn

The VN-Index experienced a correction yesterday with a loss of 0.33 per cent to close at 714.5 points.

Market conditions were negative on the HCM Stock Exchange as losing stocks outnumbered gaining ones by 152-104 while 68 closed unchanged.

Blue chips were the main drag while 17 of the top 30 shares by market value and liquidity declined while only seven advanced.

“The psychological resistance of 720 points is not easy to overcome as investors increased selling when the VN-Index is approaching this area,” stock analysts at Sai Gon-Ha Noi Securities Co (SHS) wrote in a market report.

The VN-Index fell 0.43 per cent in the last two sessions but has still gained 7.5 per cent compared to the end of last year.

A positive factor was high liquidity which remained around VND3 trillion (US$131.6 million) per session in the past two weeks, 50 per cent higher than normal daily trading value since the beginning of this year.

Almost 233 million shares worth VND3.6 trillion were traded yesterday on the HCM Stock Exchange.

“The VN-Index could drop in the next session and retest the support levels of around 711-714 points,” SHS’s analysts said.

Property stocks continued to attract cash but started to decline under profit-taking pressure.

Novaland Investment (NVL), Hoang Quan Consulting-Trading-Service Real Estate (HQC) and Kinh Bac City Development (KBC) were still among the most active stocks on the exchange but their prices decreased between 1 per cent and 5 per cent.

FLC Group (FLC) and Tan Tao Investment Industry (ITA) were among few gainers. ITA hit the limit rise of 7 per cent in a single session while FLC climbed 4.7 per cent.

Among major large cap stocks, only Vinamilk (VNM), Vietinbank (CTG), Hoa Sen Group (HSG) and Mobile World Group (MWG) maintained their growth.

“Investors are seeking new investment opportunities in different stocks after many blue chips have gained substantial growth in the past rallies,” Bui Nguyen Khoa, a stock analyst at BIDV Securities Co wrote in a note yesterday.

On the Ha Noi Stock Exchange, the HNX-Index inched up 0.1 per cent to end at 86.3 points with over 54 million shares worth VND519 billion exchanged.

Foreign investors returned to be net buyers in the HCM City’s market yesterday after two net selling sessions, picking up a net value of VND67 billion, mainly attributed by strong buys in dairy giant Vinamilk’s shares which was worth VND55.7 billion.

They were also net buyers on the Ha Noi exchange but for a modest value of VND3 billion. — VNS

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