Market dips on lower trade

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SaigonTimes English - 32 month(s) ago 2 readings

Market dips on lower trade

HCMC – After a mild recovery last Friday, the local market sharply dropped back on Monday given high profit taking pressure in securities and banking stocks, with the VN-Index shedding 4.09 points, or 0.95%, from the day earlier to close at 428.02.

Market dips on lower trade

By Phuong Thao - The Saigon Times Daily

Investors watch stock prices at a securities fi rm. The VN-Index shed 4.09 points, or 0.95%, from the day earlier to close at 428.02 - Photo: Minh Khue
HCMC – After a mild recovery last Friday, the local market sharply dropped back on Monday given high profit taking pressure in securities and banking stocks, with the VN-Index shedding 4.09 points, or 0.95%, from the day earlier to close at 428.02.

The market opened in the red and after a brief rally, fell off once more to hit a daily low of 424.43 points. It staged a recovery in two phases but failed to bring the index up into positive territory by the close.

Liquidity on the southern bourse sharply reduced with 74.8 million shares worth VND1.1 trillion changing hands, falling by 5.9% and 28.5% from the session earlier respectively.

Losers largely overwhelmed gainers by 190 to 61. All banking stocks had a bad day while STB was the only one to close in the green.

Foreigners took 12.6 million shares worth VND344 billion and offloaded 10.1 million shares worth VND301 billion, accounting for 29.9% and 26% of the market’s buying and selling value respectively.

Military Bank (MBB) took the lead for liquidity but the stock lost 3.3% from the day earlier to VND14,400 per share with 7.7 million shares changing hands. Sacombank (STB), the second most heavily traded stock, jumped 4.1% to VND20,300 on the volume of 7.2 million shares.

The Hanoi market also slumped while turnover fell 23% to just VND551 billion. The HNX-Index lost a hefty 2.3 points, or 3.21%, against the previous session to 69.23.

The number of falling stocks far outnumbered that of rising ones at 207 to 82. Foreigners shifted to the selling side, accounting for 3.3% and 6.2% of the market’s buying and selling value respectively.

Beta Securities Co. said the market would go down in short term after opening the week in the red on Monday despite good news of the State Bank of Vietnam adjusting down key rates and deposit rate caps by 1 percentage point from Tuesday. However, losing sessions will be a good chance for long-term investors to accumulate cheap stocks.

Viet Dragon Securities Co. (VDS) also expected the market to drop back to the supporting range between 405 and 412 points or move sideways this week. Technical signs turn worse and liquidity has declined over the past days, it commented.

However, VDS says this is not a right time to join the playground and investors should stay on the sidelines and watch the market at least till the middle of this week.

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