Shares correct down on profit-taking

An investor watches share prices on an electronic board at Bảo Việt Securities Co. — VNS Photo Việt Thanh

HÀ NỘI — Shares suffered strong correction on Tuesday on the two stock exchanges after a three-week rally came under heavy profit-taking pressure.

The VN-Index on the HCM Stock Exchange slumped  一. 七 二 per cent to close at  九 五 三. 三0 points. Việt Nam’s benchmark index climbed over  一 三. 五 per cent in the past month.

Large-cap stocks experienced the heaviest selling pressure with  二 六 of the top  三0 largest stocks by market value and liquidity declining, while only three advanced.

FLC Faros Construction (ROS) was the biggest loser, down  六. 三 per cent.

Major shares with losses of over  二 per cent included Vinamilk (VNM), lender BIDV (BID), Vietinbank (CTG), IT giant FPT Corp (FPT), Bình Minh Plastic (BMP) and Tiền Phong Plastic (NTP).

Brewer Sabeco was also down 0. 七 per cent after strong rallies over the past two weeks following the Ministry of Industry and Trade’s announcement of selling a majority of stakes in the company.

On the positive side, PV Gas (GAS), the biggest listed energy company, was among few gainers, rising  一. 六 per cent to VNĐ 八 二, 七00 (US$ 三. 六 三) per share. Confectionery Kido Group (KDC) was also up  二 per cent and sugar maker Thành Thành Công – Biên Hòa JSC (SBT) climbed  六. 三 per cent.

According to BIDV Securities Co, Tuesday’s downturn was a necessary correction in the context of the market climbing too fast. However, despite the index slump, liquidity continued to increase sharply, showing strong demand among investors.

About  二 六 五. 五 million shares worth VNĐ 七. 三 四 trillion ($ 三 二 二 million) were traded on the southern market, down  一. 七 per cent in trading volume but up  一 八 per cent in trading value compared to the previous session.

On the Hà Nội Stock Exchange, the HNX-Index dropped by a steeper  二. 九 八 per cent to end at  一 一 三. 二 三 points.

Nearly  八 三 million shares worth VNĐ 一. 一 四 trillion were traded on the northern bourse.

Trần Hải Yến, a stock analyst at Bảo Việt Securities Co, said the bearish session on Tuesday may have had a negative impact on the early session today but she believed this correction will be short-lived and the overall index will soon rebound.

Foreign investors were net buyers in HCM City’s market for a net value of VNĐ 一 三 八. 四 billion, but they were responsible for a small net sell value of VNĐ 一 一 billion on the Hà Nội exchange. — VNS