Market tumbles as investors lock in profits

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SaigonTimes English - 48 month(s) ago 20 readings

HCMC – The southern stock market fell back on Wednesday as investors with weaker appetite for risks locked in profits after three rising sessions in a row, sending the VN-Index down 4.06 points to 481.91.

By Thuy Trieu - The Saigon Times Daily

HCMC – The southern stock market fell back on Wednesday as investors with weaker appetite for risks locked in profits after three rising sessions in a row, sending the VN-Index down 4.06 points to 481.91.

Many investors decided to offload shares, driving the supply up by 19.4% to 71.5 million shares while the demand was unchanged at 58 million shares.

At the end of the day, investors traded a total 40.6 million shares worth VND1 trillion, increasing 37% and 35% respectively from the session earlier. However, this was still low compared to the average traded value of VND1.5 trillion last year.

Put-through transactions accounted for big proportion with 8.64 million shares worth VND279 billion. Of which, there were two big transactions of one million shares of Hoang Anh Gia Lai (HAG), and 2.8 million shares of Saigon Securities Inc. (SSI).

Opening the market, the VN-Index rose 1.97 points, but the uptrend was short-lived as the index turned course to decline 3.18 points in the next phase given the fall of blue-chips, and finally ended the session with a loss of 4.06 points.

The market saw up to 190 stocks falling and only 35 others increasing, including 22 stocks hitting the floor prices and five reaching the ceiling prices. Most of blue-chips especially finance stocks fell while leading stocks like MSN, BVH, and VIC in previous sessions were mixed on the day. MSN fell by VND1,000, BVH rose by VND1,000, while VIC moved flat.

Foreign investors remained on the buying side as they bought 3.7 million shares worth VND146 billion and sold 2.5 million shares worth VND90 billion.

APEC Securities Co. said that given two sessions of low liquidity, investors were still in hesitation.

“While the market has yet had strong momentum to surge to the threshold of 500 points, trading in narrow range would remain the trend for the time being,” it said.

Meanwhile, Beta Securities Co. said that despite lower index, traded volume increased, proving that buying energy was strong at low prices. That would be a factor supporting the market, the broker said.

Fiachra Mac Cana, managing director of the Hochiminh City Securities Co., said the market would drift for the next weeks until the twin factors of the Vinashin story and the Party Congress are unfolded.

“The seasonal buffeting from inflation and the currency are other factors at work of course but we note that recent stability in the forex market plus signs that the bond market may be bottoming out signal that the macro picture may start to brighten again from next month. Therefore we remain positive,” he said.

Hanoi’s market lost 2.24 points to 111.16, the second consecutive falling session. The market’s traded volume was 28.7 million shares worth VND550 billion, falling 24% and 20% respectively from the session earlier.

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