VN shares drop after three-day rally

Investors trace market fluctuations at MB Securities' stock trading floor in Ha Noi. - VNS Photo Truong Vi

The VN Index on the HCM Stock Exchange dropped 0.2 per cent to close at 590.84 points and the HNX Index on the Ha Noi Stock Exchange lost 0.3 per cent to end at 80.62 points.

This was the first drop for both VN Index and HNX Index after they jumped 2.2 per cent and 1.5 per cent, respectively, in the previous three days.

Energy stocks led decliners, with the energy index losing 2.4 per cent as US benchmark crude West Texas Intermediate (WTI) fell 0.3 per cent to trade at US$46.95 a barrel.

WTI crude dropped after the International Energy Agency said yesterday that a global oil supply glut will persist through 2016 as demand growth slows from a five-year high and key crude producers maintain near-record output.

The largest energy stocks suffered biggest losses. Petrovietnam Gas Corporation (GAS) dropped 2 per cent, Petrovietnam Drilling & Well Services (PVD) and Petrovietnam Coating Company (PVB) were down 2.3 per cent, and Petrovietnam Drilling Mud (PVC) lost 1.9 per cent.

Sai Gon Securities Joint Stock Corporation (SHS) said in a daily report yesterday that the brokerage expects the VN Index to drop to 580, or about 1.7 per cent, over the next few days as excitement over the Trans-Pacific Partnership (TPP) free trade agreement wanes.

SHS also said investors may take profits after the recent rally in large-cap stocks such as Vietcombank (VCB), property developer Vingroup Corporation (VIC) and conglomerate FPT Corporation (FPT). VCB fell 0.4 per cent, FPT dropped 0.7 per cent and VIC was down 0.9 per cent yesterday.

On the positive side, Vinamilk (VNM) and Binh Minh Plastics Joint Stock Company (BMP) were best gainers after the State Investment and Capital Company (SCIC) announced that the Government allowed the SCIC to sell all of its stakes in these two companies. At the end of the day, VNM gained 1 per cent and BMP was up 3.6 per cent.

FLC Group (FLC) remained the most active stock on the market for the second day with more than 9.4 million shares in trading and dropped 2.7 per cent.

Both local exchanges traded more than 154.5 million shares and VND2.32 trillion ($103 million), equal to the average trading value in the last twenty days.