VN-Index struggles to maintain rally

10:27 | 28/08/2018

The exciting movement of the market on Monday morning was extinguished by selling pressure increasing in the afternoon, affecting many large-cap stocks.

vn index struggles to maintain rally
Investors follow market fluctuations on the VNDirect securities trading floor in Hanoi. - VNA/VNS Photo Pham Hau

The benchmark VN-Index on the HCM Stock Exchange rose 0.49 per cent to close at 991.92 points. It made a weekly gain of 1.9 per cent last week.

The HNX Index on the Ha Noi Stock Exchange remained unchanged at 111.62 points. It increased 3.33 per cent last week.

Liquidity stood above the moderate level with more than 243 million shares traded on the two local bourses, worth nearly VND5.2 trillion (US$225.6 million).

Financial-banking, securities and insurance were the main driving factors of the stock market on Monday.

Among those industries, the insurance sector index jumped 2.4 per cent and the figures for banking and brokerage sectors were between 2 per cent and 2.5 per cent, data on vietstock.vn showed.

Mixed performance was seen among the top 30 largest stocks by market capitalisation in the VN30 basket.

The basket’s VN30 Index inched up 0.64 per cent to 966.55 points at the end of the session.

Among gaining stocks in the VN30 group were insurer Bảo Việt Holdings (BVH), Vietinbank (CTG), Vietcombank (VCB), brewery Sabeco (SAB) and Việt Nam National Petroleum Group (PLX).

On the other side, dairy giant Vinamilk (VNM), consumer staple firms Kido (KDC), FPT Corporation (FPT) and Retailer Vincom Retail (VRE) weighed down the market sentiment.

After remaining net sellers for three consecutive sessions, foreign investors on Monday net bought VNĐ93 billion on the HOSE, focusing on Vietcombank VCB (VNĐ26.78 billion), steel maker Hòa Phát Group (HPG) (VNĐ14.01 billion) and Joint Stock Bank For Investment and Development (BID) (VNĐ12.6 billion).

However, they net sold VNĐ3.9 billion on the HNX.

Bank stocks still took the lead Monday. Notably, the biggest gainers, including CTG, BID, and VCB, respectively grew by 4.2 per cent, 1.8 per cent, and 1.8 per cent and contributed 1.47 per cent to the rise of bank stocks.

Securities stocks also jumped as Ho Chi Minh City Securities Corporation (HCM), Sai Gon Securities Incorporation (SSI) and Viet Capital Securities Joint Stock Company (VCI) respectively increased by 4.4 per cent, 2.2 per cent, and 1.2 per cent.

According to Bảo Việt Securities Company, the market saw a wide divergence among groups of stocks. Cash inflows mostly ran into large-cap stocks, typically bank stocks. In the next sessions, when these stocks retreat, cash inflows may alternatively run into mid-cap and penny stocks.

It added that the market will continue rising in the next sessions, approach and test the point range at 995-1,000. While growing, the market may experience some short-term volatility amid the lead of bank stocks.

According to Sai Gon-Ha Noi Securities JSC (SHS), on Tuesday, te VN-Index could continue rising to reach the psychological threshold of 1,000 points.

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