Profit pressures squeeze down market

Investors continued take profits from stocks which had gone up in price in previous weeks.

Military Bank (MBB) was off 1.26 per cent while Saigon Securities Inc. (SSI) lost 1.73 per cent.

The highly liquid real estate stocks of the Tan Tao Investment Industry Corp. (ITA), Licogi 16 (LCG) and Ninh Van Bay Real Estate (NVT) took an even sharper dive of 2-4 per cent. Song Da Urban & Industrial Zone Investment and Development (SJS) stock might have hit the floor with more than 500,000 shares matched.

High-price stocks like Khang Dien House Trading and Investment (KDH), Sao Mai Construction Corp. (ASM), Cotec investment and Land-House Development (CLG) and Quoc Cuong Gia Lai (QCG) all fell sharply as investors lost patience and took profits.

The locking in of profits occurred for the most part with leading stocks on the Hanoi Stock Exchange (HNX). Petro Vietnam Construction (PVX), Kim Long Securities (KLS), Vietnam Construction and Import-Export (VCG), Petrovietnam Southern Gas (PGS) and PetroVietnam Northern Gas (PVG) all dropped 2-4 per cent.

Investors remained cautious, making their own predictions of future macroeconomic movement. The Consumer Price Index is being watched closely following the interest drop mandated by the State Bank. Although investors continue to buy stocks, they are also alert to possibilities to take profits as well.

The VN-Index of the Ho Chi Minh Stock Exchange (HoSE) ended off 0.68 points or 0.14 per cent, ending at 472.16 points. Declining were 131 stocks, nearly equaling to the 135 advancers.

Decliners outran advancers 144 to 138 on the Hanoi Stock Exchange (HNX), pushing the benchmark HNX-Index down 0.58 points or 0.73 per cent to 79.33 points.

However, buying power stayed quite high. Cheap speculative stocks continue to make strong gains with big matching volumes. HoSE’s Vietnam Mechanization Electrification and Construction (MCG) and Petrovietnam Transportation Corp. (PVT), along with Tay Bac Minerals Investment (KTB) and Bac Giang Exploitable Mineral (BGM) stocks, all jumped sharply.

Meanwhile, the low priced stock of Dai Chau (DCS), IDJ International Financial Investment and Enterprise Development (IDJ) and PVI Investment and Development (PV2) rose more than 6 per cent with millions of units of each matched.

Liquidity soared despite selling pressure as 143.5 million shares worth VND2.46 trillion ($118.6 million) changed hands on the HoSE. Liquidity on the HNX also climbed, with movement of 116 million shares worth VND1.27 trillion ($61.1 million).