Large-caps correct, halting VN-Index gains

Correcting pressure on large-cap stocks during the afternoon session narrowed gains on the VN-Index and sent the index back to near reference level on Wednesday.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange rose 0.14 per cent to end Wednesday at 994.46 points.

Some 188 million shares worth nearly VND3.6 trillion (US$154 million) were traded on the southern market.

The VN-Index slid 0.05 per cent to end Tuesday at 993.05 points.

Positive movements on the US stock market during Tuesday’s overnight trading brought prosperity to the Vietnamese market on Wednesday morning.

On the US stock market, the Dow Jones Industrial Average rose 237.44 points, or 0.89 per cent, to 27,024.8. The S&P 500 gained 29.53 points, or 1.00 per cent, to 2,995.68, and the Nasdaq Composite added 100.06 points, or 1.24 per cent, to 8,148.71.

In the afternoon session, with an increase in supply, the upward trend on the VN-Index slowed.

According to Sai Gon-Ha Noi Securities Joint Stock Company (SHS), investors tended to become cautious as the VN-Index approached the psychological threshold of 1,000 points.

Selling pressure hit large-caps such as Vingroup (VIC) (-0,3 per cent), Bank for Investment and Development (BID) (-0,6 per cent), Sabeco (SAB) (-0,3 per cent), Vietjet Air (VJC) (-0,4 per cent) and Masan Group (MSN) (-0,8 per cent).

Phu Nhuan Jewellery (PNJ) was the best performer in the VN30 basket during afternoon trading, when demand unexpectedly boosted the stock by 2 per cent, with the matching volume reaching its highest level in nearly a month.

FLC Faros Construction Joint Stock Company (ROS) hit the daily limit of a 7 per cent climb for three straight sessions on Wednesday with a total matching volume of more than 30 million shares.

Other pillar stocks also advanced, including Vinamilk (VNM) (+1.6 per cent), Vietcombank (VCB) (+ 1.1 per cent), PVPower (POW) (+ 2.7 per cent), Vietinbank (CTG) (+ 0.9 per cent) and Techcombank (TCB) (+ 0.8 per cent).

By sector, retail, securities, agriculture, food and beverage, seafood processing and construction materials were the losers on Wednesday.

Meanwhile, logistics, wholesale, insurance, oil and gas, banking, healthcare, information and technology advanced.

On the Ha Noi Stock Exchange (HNX), the HNX-Index dropped 0.07 per cent to end Wednesday at 105.93 points.

Some 29 million shares worth VND277 billion were exchanged.

On the HNX, pillars like Vicostone JSC (VCS) (-2.3 per cent), Vietnam National Reinsurance Corporation (VNR) (-5.8 per cent), Southern Gas Trading Joint Stock Company (PGS) (-2.9 per cent), PetroVietnam Technical Services Corporation (PVS) (-0.5 per cent) all dropped, leaving the HNX-Index down slightly for the second consecutive session.

The HNX-Index dropped 0.03 per cent to end Tuesday at 106.01 points.

According to Bao Viet Securities Co (BVSC), the market was forecast to fluctuate for the rest of the week.

“The VN-Index is expected to fluctuate between 990 and 998 points. The market will continue to experience a wide divergence among stock sectors, depending on Q3 business results,” BVSC said in its daily report. 

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