BizLIVE - Vietnamese equities erased earlier losses to finish down on Wednesday as investors locked profits on banking stocks, while cash was seen running to mid-caps and pennies, helping the main index avoid a sharper decline.
Vietnam Shares Fall on Profit Booking, Cash Seen Channeled into Midcaps
Movements of the VN Index on March 7. Chart: Bloomberg
The benchmark VN Index of the Ho Chi Minh Stock Exchange (HOSE) dropped 8.03 points, or 0.72%, to settle at 1,112.26. The gauge moved in a wide range between the intraday low of 1,103.52 and the intraday high of 1,126.67.
Profit booking weighed banks such as BIDV (BID), VietinBank (CTG), MBBank (MBB), Sacombank (STV), Vietcombank (VCB), Eximbank (EIB) and HDBank (HDB), which have risen strongly recently.
Meanwhile, gains in other large-caps such as Masan Group (MSN), Vingroup (VIC), Vinamilk (VNM), and FLC Faros (ROS) helped the index avoid falling further.
Volume increased with 279.08 million shares worth 7.65 trillion dong ($337 million), compared to 236.33 million shares valued at 7.15 trillion dong on Tuesday.
Buying was strong at mid-caps and pennies, which are deemed speculative stocks in the market, especially HAI, AMD, TSC, FIT, KLF, and FLC, bringing them to hit the ceilings.
The VNMid Index, which tracks mid-cap stocks, ended up 0.25% while the VNSML Index rose 0.10%, versus a loss of 1.01% of the VN30 Index, comprised of the largest 30 blue-chips.
Foreign traders net bought 84.49 billion dong on the HOSE, following a net purchase of 278.75 billion dong in the previous day.
Technically, cash inflows were shifting to mid-caps and pennies while profit taking was seen at banking and oil & gas stocks, causing the major indexes dropped after a rebound on Tuesday, MB Securities said in a note to clients.
This trend is likely to continue in the coming days, Bao Viet Securities researchers said.
The market is in the phase of differentiation and there is no clear recovery trend, BIDV Securities said, predicting the equity indexes will likely continue to fluctuate.