Vietnam shares retreat from recent rallies

An investor watches market movements at Bao Viet Securities Corp in Ha Noi. Local markets yesterday turned down as shares ran into profit-taking and tumbling oil prices pulled down energy firms.-VNA/VNS Photo Tran Viet

The benchmark VN Index on the HCM Stock Exchange retreated 0.4 per cent from two-day gains of 2.3 per cent to finish at 622.45 points.

The HNX Index on the Ha Noi Stock Exchange ended a five-day rally of 2.5 per cent to close at 82.19 points, slightly lower than the previous session.

Dairy firm Vinamilk (VNM), insurer Bao Viet Holdings (BVH), Sai Gon Thuong Tinh Joint Stock Commercial Bank (STB), Sai Gon Securities Inc (SSI) and Tien Phong Plastic JSC (NTP) dragged the markets down as they suffered from profit-taking pressure after recent gains, Maritime Securities Inc (MSI) wrote in its daily report.

VNM dropped 1.4 per cent after rising 2.1 per cent in the previous two days, BVH pulled back 2.4 per cent from a two-day surge of 7.7 per cent.

STB lost 0.8 per cent after it rocketed more than 23 per cent during the previous four sessions, SSI was down 0.5 per cent from a two-day jump of 3 per cent, and NTP slipped 1.3 per cent after it recorded a slight increase of 0.4 per cent in the previous three days.

The decline of those stocks also triggered other blue chips on the two local exchanges to decline further such as property Vingroup JSC (VIC), Viet Nam Joint Stock Commercial Bank for Industry and Trade (CTG), insurer PVI Holdings (PVI) and Vicostone JSC (VCS).

Energy stocks declined from recent gains as global oil prices were choppy.

US crude West Texas Intermediate (WTI) rose 0.3 per cent to trade at US$48.47 a barrel after tumbling from a seven-month high of $48.31 a barrel reached on Tuesday, and London-traded Brent crude inched up 0.1 per cent to trade at $49.35 a barrel.

Most energy stocks slipped after they had climbed higher in the previous trading days. PetroVietnam Gas Corp (GAS) lost 1.7 per cent, while energy stocks that are listed on the northern bourse declined between 2 per cent and 2.6 per cent.

On the opposite side, Hoang Anh Gia Lai JSC (HAG) and its subsidiary HAGL Agricultural JSC (HNG) continue to rise from Tuesday's gains. They surged 6.3 per cent and 6.4 per cent, respectively.

Both local markets traded more than 185.7 million shares worth VND3.15 trillion ($140 million), a slight decrease from Tuesday's trading value.