VN Index retreats from 9-year high
The VN Index on the HCM Stock Exchange yesterday retreated from its nine-year high as investors tried to take profits from stocks’ recent good gains.
The benchmark index was down 0.4 per cent to close at 700.35 points. It had rallied total 3 per cent in the previous five sessions to touch a nine-year high of 703.18 points on Thursday.
Trading market liquidity increased slightly from the previous trading day with more than 124.6 million shares being traded, worth VND2.39 trillion (US$106.34 million).
“Market sentiment weakened yesterday after stocks performed well during the period from the three sessions before Tet holiday till now,” Bao Viet Securities Corp (BVSC) said in a note.
In addition, the market was pushed down by the sectors that had lifted the stock market recently, such as banks, as “these firms’ stocks have reached a price level that allows investors to offload part of their portfolios to earn short-term profits,” BVSC said.
The performance of the banking sector was negative as most listed banks on the southern bourse saw their values decline during the session while only Eximbank (EIB) maintained its upward trend, rising 6.3 per cent to total a four-day jump of 15 per cent.
Vietcombank (VCB) fell 1.9 per cent from a four-day increase of 3.8 per cent, Vietinbank (CTG) lost 1.3 per cent after rising 8.1 per cent in the previous six sessions, and MBBank (MBB) edged down 0.4 per cent following its three-day gain of 2.9 per cent.
Other blue chips such as PetroVietnam Gas Corp (GAS) and property developer Vingroup (VIC) also ended in the red on profit-taking. These two stocks ended down 1.2 per cent each. GAS had gained 5.4 per cent in the previous seven days.
On the opposite side, some companies with impressive earnings reports for 2016 helped the southern bourse avoid falling further, including property firm FLC Group (FLC) and Faros Construction Corp (ROS).
FLC reached its daily price increase limit of 7 per cent after reporting total revenue of VND6.34 trillion, up 19.2 per cent from 2015, and total post-tax profit of VND987 billion, up 9.6 per cent year on year.
On the Ha Noi Stock Exchange, the HNX Index rallied for a fourth day, increasing 0.5 per cent to end at 85.03 points. The northern market index has moved up total 2.4 per cent in the last four sessions.
Market trading liquidity on the northern bourse increased sharply from Thursday with more than 28.5 million shares being traded, worth VND259.6 billion. — VNS
