March 7: Vietnam Stocks Continue to Retreat on Profit Taking

The benchmark VN Index lost 3 points or 0.67% to 442. Volume stood at 84.74 million shares changed hands for VND1.156 trillion of which put-through trading contributed 1.44 million shares and VND28.99 billion.

Market kicked off the morning session with retained selling pressure. Trading pace was fast as liquidity was still good on solid demand at low prices. The buying interest helped pared the early loss and at late morning trading, VN Index briefly entered the positive ground on high demand of blue chips. However, the fight was not over and the bears became aggressive again, sending the index back to negative territory.

VN30 plunged faster with a loss of 579 points or 1.14% to stand at 502.62. Volume was 30.65 million shares worth of VND611.03 billion. It has been the fact that stocks in the VN30 had higher beta than the broader market in general as their share prices both go up and down faster than the market.

The market breadth remained negative. Among 308 listed firms on HOSE, losers outpaced gainers by 148-95 and 65 stocks unchanged of which 38 hit upper limit and 31 hit lower limit.

Late yesterday, the governor Nguyen Van Binh said at the Government’s regular meeting that Vietnam will cut deposit interest rate and benchmark interest rate, discount interest rate and refinance interest rate  by 1% in the next few days. Market has been waiting for the news and it is not a surprise, however, the decision came out a bit earlier than expectation.

Banks shares were weak today, EIB share limited down with 8.5 million shares changed hands, STB share price also hit floor with nearly 3 million shares traded. Active players saw the names of SBS with 4.6 million shares, VSH with 2.9 million shares, VNE and LCG with 2.3 million shares each.

On the Hanoi Stock Exchange, the HNX closed down 0.28 point or 0.37% to 74.92. Trading volume stood at 97.64 million shares traded for VND860.73 billion.

Market breadth stayed negative with 85 gainers, 279 losers and 31 flat issues of which 45 shares limited up while 78 hit the floor.

Of note, 23.69 million HBB shares were changed hands this morning, 10.15 million SHB shares changed hands while other active players PVX, KLS and VND saw respective volume of 5.7 million shares, 5.5 million shares and 4.9 million shares.