VN-Index steps down from 4-day rally

Friday, Nov 08, 2019 07:37

A Sai Gon Thuong Tin Joint Stock Commercial Bank (Sacombank) office in Ha Noi. The bank's shares fell 0.9 per cent on Thursday. – Photo

Vietnamese shares retreated from a four-day rally amid stronger profit-taking pressure and uncertainty of US-China trade relations.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange inched down 0.09 per cent to close Thursday at 1,024.03 points.

The VN-Index gained total 2.61 per cent in the previous four trading days.

The growth of the benchmark index has slowed after the VN-Index passed the 1,000 point level.

The VN-Index narrowed its growth from 1.68 per cent last Friday to 0.06 per cent on Wednesday.

Weighing on the benchmark were insurer Bao Viet Holdings (BVH), property firm Vingroup (VIC), dairy producer Vinamilk (VNM), and Sacombank (STB), VPBank (VPB) and Vietinbank (CTG).

While large-cap stocks lost momentum, mid-cap and small-cap stocks were also hit by profit-taking pressure.

The VNMID and VNSML indices dropped 0.12 per cent and 0.02 per cent, respectively.

On the positive side, good performances among the likes of Vietcombank (VCB), Vincom Retail (VRE), Bank for Investment and Development of Vietnam (BID), consumer firm Masan (MSN) and steel producer Hoa Phat (HPG) helped stop the market from falling further.

Among those, Hoa Phat shares jumped 3.2 per cent after the company announced its 10-month output had reached 2.18 million tonnes, up 12.5 per cent year-on-year.

More than 193 million shares were traded on the southern bourse, worth VND4.23 trillion (US$182.3 million).

The figures were down from the 255 million shares worth VND4.7 trillion recorded on Wednesday.

The market struggled as large-cap stocks were unable to cope with increased selling pressure, especially taking profits from the VN-Index’s four-day rally, Thanh Cong Securities Co (TCSC) said in its daily report.

But a slight decrease with modest changes in trading liquidity was needed for the VN-Index to settle at the current range, the company said.

The settlement would provide a foundation for the benchmark’s future growth, it added.

In the short term, large-cap stocks such as banks and property firms would continue driving the VN-Index toward 1,045 points, the company forecast.

But in the next few days, the benchmark index would move to around 1,025 points as market sentiment would be dependent on the developments of US-China trade relations, TCSC said.

On the Ha Noi Stock Exchange, the HNX-Index gained 0.13 per cent to end at 106.88 points.

The northern market index rallied 1.6 per cent in the last five trading days since November 1.

More than 22 million shares were traded in Ha Noi, worth VND287.8 billion. – VNS

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