Stock market dives, profit taking rises in banking, consumer and energy sectors
Inside brewer Sabeco’s lab. The company shares dropped 1.6 per cent on Tuesday. — Photo sabeco.com.vn
Vietnamese shares wiped out early gains to collapse on Tuesday, dragged by banking, consumer and energy sectors on stronger profit taking.
The benchmark VN-Index on the Ho Chi Minh Stock Exchange dipped 093 per cent to end Tuesday at 90398 points.
The market’s growth momentum weakened in the later half of the morning session after the VN-Index had risen as much as 055 per cent.
The VN-Index gained 047 per cent on Monday.
Banks, consumer firms and energy companies weighed on the market as investors tried to profit from their recent gains.
Large-cap stocks in the three sectors such as brewer Sabeco (SAB), retailer Masan (MSN), sugar firm Thanh Thanh Cong-Bien Hoa JSC (SBT), PetroVietnam Drilling and Well Services (PVD), Vietinbank (CTG), Techcombank (TCB) and Vietcombank (VCB) declined.
In the banking sector, significant gainer Sacombank (STB) plunged 3.6 per cent after having rallied total 36.6 per cent since July 31.
Those large-cap stocks also pulled the blue-chip tracker VN30-Index down 082 per cent to 85620 points.
The VN30 futures due on October 15 was down 102 per cent to 854.1 points, indicating investors were pessimistic about the market’s short-term outlook, according to Sai Gon-Ha Noi Securities Co (SHS).
Other worst-performing sectors included property, insurance, technology, wholesale, and home appliances.
The mid-cap and small-cap trackers on HoSE dropped 112 per cent and 065 per cent, respectively.
On the positive side, retail, rubber and construction were among the sectors that helped cushion the market from dropping further.
The General Statistics Office (GSO) on Tuesday reported Viet Nam’s nine-month GDP growth was 212 per cent – the lowest in 10 years.
The country’s economy in the past nine months had been driven by the construction sector, the GSO reported, as the sector expanded 308 per cent and contributed more than 58 per cent to the overall growth rate.
“Profit taking pressure showed signs of increasing when the VN-Index tapped the 920-930 zone,” Thanh Cong Securities Co (TCSC) said in its daily report.
“The market will see a big divergence among stocks as companies with positive third-quarter earnings outlooks may stand out,” the brokerage firm said.
“The VN-Index may test the 895-905 zone again to find out if the market has stabilised after its recent rally,” TCSC forecast.
On the Ha Noi Stock Exchange, the HNX-Index lost 104 per cent to 13174 points at the end of Tuesday.
The northern market index advanced 122 per cent on Monday.
More than 525.7 million shares were traded on the two exchanges, worth VND947 trillion (US$408.3 million).
Foreign investors net-sold total VND617.4 billion worth of local shares, up 58.8 per cent from the previous day. — VNS
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