Shares fall as blue chips lose steam

Shares declined further yesterday afternoon as large-cap stocks lost steam under increased profit-taking pressure. — VNA/VNS Photo 

HÀ NỘI – Shares declined further yesterday afternoon as large-cap stocks lost steam under increased profit-taking pressure. Money was more focused on low value shares.

The VN-Index, the measure of  三 一 四 stocks on the HCM Stock Exchange, decreased for the first time in the last five trades, down 0. 九 per cent to close at  九 八 一 points. It rallied  一. 九 per cent in the last four trading days.

On the Hà Nội Stock Exchange, the HNX-Index tracking  三 七 八 stocks was down 0. 六 per cent after a three-day rise, ending the session at  八 五 points.

Many large companies tumbled yesterday following strong gains last week, including the highest valued stocks such as dairy giant Vinamilk (VNM), Bảo Việt Holdings (BVH), Vietcombank (VCB), private equity firm Masan Group (MSN), software producer FPT Corp (FPT), and PV Gas (GAS).

Insurer Bảo Việt Holdings was the biggest loser with a drop of  六. 三-per-cent. Others fell between  一 and  三 per cent.

Traders focused on low-valued stocks such as real estate developers FLC Group (FLC) and Sacomreal (SCR), agricultural business Hoàng Anh Gia Lai Company (HAG), furniture maker Duc Long Gia Lai Group (DLG), PetroVietnam Construction (PVX), Quang Nam Rubber Investment JSC (VHG), and Sài Gòn-Hà Nội Bank (SHB).

These stocks were the most active codes on the two exchanges.

According to analysts at Investment Vietnam Securities Co, some of these shares have climbed  三0- 五0 per cent in the past month and come into the overbought zone. They forecast they would soon face downward correction in the coming sessions and money would flow back to large-cap stocks.

“With positive information, such as lending rates declining and companies soon disclosing their third-quarter earnings results, we think blue chips will rise again and this will help lift the benchmark VN-Index to  七00 points,” they wrote in a report.

Liquidity decreased with over  一 五 四 million shares, worth a combined VND 二. 二 trillion (US$ 九 九 million), traded in the two markets, down  二 五 per cent in both volume and value compared to Friday’s levels.

Foreign investors returned to be net sellers yesterday after a strong buying session on Friday. They offloaded shares worth a net value of over VND 七 二 billion on the two exchanges. – VNS