Shares mixed on profit-taking pressure

Created 05 May 2017
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Hanoi (VNA) – Shares extended gains on the HCM Stock Exchange on May 4 but corrected down on the Hanoi Stock Exchange given stronger profit-taking pressure.

In HCM City, the benchmark VN-Index added 0.34 percent to close at 722.02 points. The Index gained over 2 percent in the last five sessions and has expanded 8.6 percent this year.

On the Hanoi bourse, the HNX-Index sank for the first time in the last four trades, edging down 0.33 percent to end at 89.52 points. The northern market index has climbed 11.7 percent since December 30, 2016.

Banks continued to be the major support for the market.

Five of nine listed banks on the two main exchanges advanced and only two declined.

Sacombank (STB) was the biggest gainer, up 4.3 percent, after the bank reported its pre-tax profits increasing 50 percent year-on-year in the first quarter.

The three largest lenders – BIDV (BID), Vietcombank (VCB) and Vietinbank (CTG) – grew between 1.2-2.3 percent each. Profits of these banks all surpassed 2 trillion VND (88 million USD) in the first three months of this year.

Many large-cap stocks in the VN30 basket which tracks the top 30 shares by market value and liquidity on the HCM Stock Exchange also advanced on information of high dividend payment, such as Vinamilk (VNM), steelmakers Hoa Phat Group and Hoa Sen Group (HSG), Saigon Securities Inc (SSI) and food producer Kido Group (KDC).

On the defensive side, some blue chips remained in a downward cycle including real estate developers VinGroup (VIC) and Novaland Investment Group (NVL), brewery Sabeco (SAB), food producer Masan Group (MSN), PetroVietnam Drillings and Well Service (PVD) and PetroVietnam Technical Services (PVS).

“After five straight sessions of rallying, the VN30 Index is approaching the strong resistance at 685-690, the boundary deciding whether the VN-Index surpasses medium-term peak at 720”, stock analyst Tran Duc Anh at Bao Viet Securities Co wrote in the May 4 market report.

Anh maintained a cautious view on market outlook and suggests investors make short-term trading or reduce stock exposure below the moderate level.

Trading volume decreased slightly on May 4, totaling nearly 268 million shares worth a combined 5.2 trillion VND (229 million USD) in the two markets. These figures were still 24.4 percent and 22.4 percent higher than the average daily trading volume and value of last week.

Foreign investors returned as net buyers in HCM City’s market on May 4 for a modest net value of 55 billion VND while they extended their net buying streak to four sessions in a row with a net value of 3.8 billion VND, up 160 percent over May 3’s value on Hanoi’s exchange.

 

 

Source: VNA

 

 

 

 

 

 

 

 

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