Markets snap six-day win streak

HA NOI – The VN-Index receded 1.16 per cent yesterday to close at 460.59 points, ending six consecutive sessions of gains on the HCM City Stock Exchange.

The volume of trades reached just 52 million shares, totalling VND1.3 trillion (US$66.7 million), with decliners outnumbering advancers by 112-73.

Many blue chips lost ground, including Sacombank (STB), which ended the day off by over 3 per cent; software giant FPT, which fell 1.35 per cent; Eximbank (EIB), down 1.12 per cent, and steel producer Hoa Phat Group (HPG), off 3.74 per cent.

Saigon Securities Inc (SSI) – the most active share, with 2.2 million traded – plunged by 2.34 per cent to just VND29,200 ($1.4) per share.

Le Cong, a market analyst for financial services provider Stoxplus Corp, said that the markets had brought investors a fast profit of 15-25 per cent after six days of gains.

"Therefore, a correction was necessary to prevent markets from growing unstably," Cong said. "Trading volume reflected stable investor sentiment, and a the short-term rally will resume soon."

Ngo Thanh Son, director of Vinafins Co, agreed, predicting that the nation's stock markets would see a consolidation in the near term, mixed with some rallies.

Stocks were at the end of a downward wave, Son said, with the price-to-earnings (P/E) ratio of listed corporates now at around 10x.

On the Ha Noi Stock Exchange yesterday, the HNX-Index managed to close flat at 135.65 points, while volume improved to 51.2 million shares, worth a combined VND1.3 trillion ($66.6 million).

Among blue chip shares on the northern bourse, however, only Kim Long Securities Co (KLS) saw an advance, gaining 0.62 per cent to close at VND16,200.

PetroVietnam Construction (PVX), the most-active share with 5.4 million traded, posted a decline of 0.81 per cent.

Foreign investors were net sellers on both markets yesterday by a net value of VND28.8 billion ($1.5 million). – VNS