VN Index slips on profits, oil prices

Saturday, Jun 03, 2017 09:05

An investor watches monitors his portfolio at the Sai Gon Securities Company in Ha Noi. — VNS Photo Doan Tung

Viet Nam’s benchmark VN Index on the HCM Stock Exchange fell on Friday, dragged by weak investor confidence and sliding oil prices.

The benchmark index on the HCM Stock Exchange dropped 0.40 per cent to close at 738.81 points, retreating from a gain of 0.5 per cent on Thursday. It posted a weekly loss of 0.6 per cent.

Market trading liquidity increased from Thursday’s numbers, with more than 184.5 million shares exchanged on Friday in the southern market, worth VND4.42 trillion (US$196.8 million).

Large-cap stocks underperformed, with 18 of the 30 largest companies by market capitalisation declining and three others ending flat.

Declining large-cap stocks included Sacombank (STB), steel makers Hoa Sen Group (HSG) and Hoa Phat Group (HPG), dairy producer Vinamilk (VNM) and FLC Faros Construction (ROS).

Among those stocks, STB lost 2 per cent and VNM edged down 0.7 per cent after they made gains of 1.2 per cent and 1.5 per cent on Thursday.

ROS slumped 6.4 per cent on profit-taking after it increased by a total of 4.8 per cent in the previous six-day period.

Energy stocks like PetroVietnam Gas (GAS) and PetroVietnam Drilling and Well Services (PVD) were pushed down as crude prices dropped.

Brent crude was down 2.4 per cent to trade at $49.44 a barrel. The benchmark has dropped more than 5.4 per cent in the last four sessions.

On the positive side, shares of brokerages recorded good gains, with Sai Gon Securities (SSI) and HCM City Securities (HCM) jumping 3.6 per cent and 6.8 per cent, respectively.

According to Sai Gon-Ha Noi Securities (SHS), the VN Index has ended a five-week rally, as investors made efforts to earn profits after the benchmark index jumped to its nine-year high near 750 points.

Investors have turned cautious as they wait for signals of improvement from the stock market, SHS said in its report, adding that the VN Index is now settling in the narrow range of 735-742 points, given the fact that the index has moved narrowly in this range for the last three sessions.

Meanwhile, the HNX Index on the Ha Noi Stock Exchange rose 0.40 per cent to end at 94.36 points. The northern market index has gained total 1.2 per cent after the last three trading days and posted a weekly gain of 0.7 per cent.

More than 65.7 million shares were traded on the northern bourse, worth VND630.2 billion, an increase in both trading volume and value compared to Thursday. — VNS

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