VN Index loses steam at 1,200 point level

Investors and trading screens at Tan Viet Securities Company in Hanoi. The benchmark VN Index fell shortly after it touched the new high of 1,200 points on Wednesday. - VNS Photo Doan Tung

The VN Index on the HCM Stock Exchange rose 0.27 per cent to end at 1,191.54 points, recovering from its previous fall of 0.7 per cent.

The benchmark index increased as much as 1 per cent during the day to touch its new high of 1,200.71 points.

More than 238.6 million shares were traded on the southern exchange, worth VNĐ8.55 trillion (US$380 million).

The market trading condition was positive with 167 gaining stocks against 130 declining ones while 44 others ended flat.

Large-cap VN30 Index also slowed gain down, closing up 0.41 per cent at 1,165.75 points with 17 of the 30 largest stocks by market capitalisation suffering losses.

Across the whole stock market, property developers, rubber companies and food and beverage producers were among the sectors that performed well.

HCM City Infrastructure Investment JSC (CII) soared 7 per cent, hitting its daily trading band, and pulled the real estate sector up after announcing it would buy two million treasury shares between April 24 and May 24.

It was followed by Vingroup (VIC), Kinh Bac City Development Holding Corp (KBC) and 577 Investment JSC (NBB). These stocks gained between 6.4 per cent and 2.8 per cent.

The two other industries were boosted by positive growth of dairy producer Vinamilk (VNM), the Southern Rubber Company (CSM), Da Nang Rubber JSC (DRC) and Kido Group (KDC).

On the opposite side, energy firms, banks, agriculture companies and securities firms were the ones that saw stocks prices fall.

Energy stocks were badly affected by a sharp fall of oil prices. Brent crude fell 1.8 per cent to trade at $66.91 a barrel.

Meanwhile, bank and securities stocks suffered as they had increased strongly in recent sessions and boosted the market up.

Among decliners were Vietinbank (CTG), Vietcombank (VCB), VNDirect Securities (VND), Vietinbank Securities (CTS) and Saigon Securities Inc (SSI).

Investor sentiment clearly improved after the US stocks recovered on Tuesday overnight, and that good sentiment was the factor to boost the stock market early on Wednesday, Sai Gon-Ha Noi Securities (SHS) said in its daily report.

However, as the benchmark VN Index had risen sharply to the new high of 1,200 points, profit-taking pressure would be strong with the VN Index being around this level, SHS said.

Thus, the VN Index is forecast to experience another volatile session on Thursday in the range of 1,180 points and 1,200 points, the brokerage added.

The HNX Index on the Hanoi Stock Exchange edged down 0.22 per cent to end at 135.32 points, making its first decline after a three-day increase of total 2.8 per cent.

The UPCOM Index on the Unlisted Public Company Market (UPCOM) ended almost flat at 60.46 points compared to its previous level of 60.45 points made on Tuesday.