VN stocks down on profit taking

A steel production line at the Hoa Phat Steel Company. Steel producers made significant gains since the policy on an anti-dumping steel price was applied in late March. - VNA/VNS Photo Huy Hung

The benchmark VN Index on the HCM Stock Exchange fell 1 per cent to finish at 652.26 points, the hardest fall since June 24. The southern market index has gone down 1.4 per cent in the last two sessions.

The HNX Index on the Ha Noi Stock Exchange closed down 1.8 per cent at 86.02 points, totaling a two-day decline of 2.4 per cent.

The stocks, which have made strong gains in recent weeks and suffered from profit taking, included steel producers, pharmaceutical companies and property developers.

Among steel producers, Tien Len Steel Group JSC (TLH) plunged 6.7 per cent, Viet Nam-Italy Steel JSC (VIS) declined by 1 per cent, Hoa Phat Group (HPG) slumped 5.2 per cent and Hoa Sen Group (HSG) fell 4.3 per cent.

Steel producers made significant gains since the policy on anti-dumping steel price was applied in late March to help local steel companies compete against imported steel products.

HPG has jumped 40 per cent, HSG has risen 30 per cent, TLH has surged nearly 60 per cent and VIS has gained nearly three-quarter.

Pharmaceutical companies also declined from recent gains, including Domestic Medical Import-Export JSC (DMC), DHG Pharmaceutical JSC (DHG) and OPC Pharmaceutical JSC (OPC). DMC fell 6.5 per cent, DHG lost 2.9 per cent and OPC plunged 6.8 per cent.

Additionally, property developers retreated after they had made gains on expectations that their earnings for the second quarter would be higher.

Viet Nam Construction and Import-Export Corp (VCG) pulled back 9.7 per cent after surging 57 per cent in the previous three trading weeks, Sai Gon Thuong Tin Real Estate JSC (SCR) fell 5.5 per cent after rising 13 per cent in the previous four days, and Song Da Urban and Industrial Zone Investment and Development JSC (SJS) dropped 1.9 per cent from a six-day rally of 24 per cent.

Oil stocks also recorded big losses yesterday as crude prices continued to slide on global exchanges.

London-traded Brent crude fell another 1.1 per cent to trade at US$46.32 a barrel, totaling a loss of 8 per cent since the beginning of July.

Local energy stocks, such as PetroVietnam Gas Corp (GAS), PetroVietnam Drilling and Well Service Corp (PVD) and PetroVietnam Mud Drilling Corp (PVC), were down between 3 per cent and 4.8 per cent.

Investors traded 239.5 million shares worth VND4.27 trillion ($189.9 million), an increase of 6 per cent from last week's daily trading value.