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Saturday, June 15, 2024

Profit-taking pressure dampens local stock market

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HCMC – The increased profit taking pressure at the end of the session today, June 2, prompted the VN-Index on the HCMC market to fall slightly to end a three-day winning streak.

The benchmark index dropped 3.87 points or 0.44% over the previous session to close at its intraday low of 874.8, with losers outnumbering winners by 249 to 129.

Over 484 million shares worth more than VND6.9 trillion were transacted on the Hochiminh Stock Exchange, up 2% in volume but down 6% in value against Monday. Block deals contributed almost VND885 billion to the total value.

In the VN30 basket, the strong profit-taking pressure left 20 stocks ending in red, which means the number of decliners doubled that of gainers. Many stocks extended their losses including lender BID and steelmaker HPG both dipping 2.17%; State-owned rubber firm GVR and lender STB both falling 2.33%.

Notably, construction firm Coteccons (CTD) plunged a sharp 7% to VND71,900 per share. The sharp decline came after Kusto, a Singapore-based company and the largest shareholder in Coteccons, has initiated the process to hold an extraordinary general shareholders’ meeting, so Coteccons shareholders can vote on changing the current Board of Directors by electing a new board, and undertake a special audit of Coteccons’ business activities associated with interest conflict issues at the firm. Stock of CTD had reportedly reached its peak of nearly VND250,000 in late 2017.

Despite a large volume of losers, the VN-Index did not fall steeply thanks to the good performance of some large caps including brewery firm SAB, gas company GAS, fuel distributor PXL, or consumer goods producer MSN. Especially, lender HDB hit its ceiling price by expanding 6.8%.

Also, one more upside amid the market fall is that speculative stocks were cash flow magnets. Industrial zone developer ITA led the southern market by liquidity with 48.9 million shares traded, followed by construction firm ROS with matching volume of 46.6 million shares.

On the Hanoi market, the HNX-Index lost 0.49 point or 0.43% to 113.64, with 103 stocks falling and 64 others rising. Many big caps such as ACB, SHB, PVI, MBS were main draggers on the market.


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