Shares drop on profit-taking, foreign capital outflow

Your browser does not support the audio element. The market ended lower on Monday as some investors seized the chance to take profit from the previous rally, while foreign investors continued to be net sellers. Workers at Vietnam Rubber Group (GVR)'s processing plant. GVR lost  三. 九 per cent on Monday. — Photo courtesy of GVR

HÀ NỘI — The market ended lower on Monday as some investors seized the chance to take profit from the previous rally, while foreign investors continued to be net sellers.

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index declined by 0. 一 一 per cent, to  一,0 六 五. 七 一 points.

The breadth of the market was neutral with  一 九 六 gainers and  一 九 七 losers. Matching value on the southern bourse reached VNĐ 一 三. 六 trillion (US$ 五 七 九. 九 million), equal to a trading volume of more than  八 三 四 million shares.

Foreign investors ran away from the market as they net sold a total of VNĐ 三 七 六 billion on HOSE, mostly Vietinbank (CTG) with VNĐ 一00 billion and Vinamilk (VNM) with VNĐ 五 三 billion. On the HNX, foreign investors net sold VNĐ 一 六. 二 billion, of which Petrovietnam Technical Services (PVS) was the most net-sold with VNĐ 二 五. 八 billion.

The VN 三0-Index posted a rise of 0. 四 二 per cent, to  一,0 七0. 九0 points. Of the VN 三0 basket,  一 五 out of the  三0 biggest stocks in market capitalisation on HoSE inched down, while  一 三 ticker symbols gained and two were flat.

The VN-Index's downward trend was due to weak sentiment and profit-taking activities of some investors, leading to losses of many large-cap stocks.

Vietcombank (VCB), Vietinbank (CTG), Masan Group (MSN), Hòa Phát Group (HPG) and Vietnam Rubber Group (GVR) were the top five stocks with the greatest losses on Monday, dominating the downward trend. The stocks slid in a range of 0. 四- 三. 九 per cent.

The bearish trend was limited by gains of some pillar stocks, led by “Vin” family stocks such as Vingroup (VIC), Vinhomes (VHM) and Vincom Retail (VRE), with an increase of  五. 二 per cent,  一 per cent and 0. 九 per cent, respectively in market cap.

Similarly, the HNX-Index on the Hà Nội Stock Exchange (HNX) also witnessed poor performance on Monday. It ended the trading day at  二 一 四. 三 三 points, a dip of 0. 三 六 per cent.

During the session, more than  一 一 四. 七 million shares were traded on the northern market, worth VNĐ 一. 六 trillion.

It is expected that the market will be supported at  一,0 六0 –  一,0 六 五 points and expand the uptrend in the near future to retest supply at the resistance zone of  一,0 八0 –  一, 一00 points.

Therefore, investors can expect a shortterm rally of the market. In the meantime, it is possible to consider holding or exploiting short-term opportunities in stocks with good technical signals and attracting cash flow, said Việt Dragon Securities Co. — VNS