Profit-takers continue to depress shares

HA NOI – National stock exchanges continued to see a correction yesterday, with the VN-Index losing nearly half-a-per-cent to end the session at 458.44 points.

"We were able to forecast the correction, driven as it was by the overnight decline in the Dow Jones and investor greed for a quick profit after a cumulative gain of about 20 per cent over the last six days of gains," said Nguyen Quang Viet, a market analyst with a HCM City-based securities company.

Profit-seekers earned about VND664 billion (US$34.05 million) from sell orders, enough to spur buys in the latter half of the session, Viet noted.

"This day-end showing reflected a positive attitude among buyers," he said, attributing the increased buys to foreign investors, who bought nearly 5.2 million shares, accounting for almost 10 per cent of total volume on the HCM City Stock Exchange yesterday.

Volume of trades rose 5.1 per cent over Tuesday's session to 54.7 million shares, worth a combined VND1.4 trillion ($71.8 million).

Tien Len Steel (TLH) surprised as the most-active share yesterday, responsible for 2.6 million trades, in response to a Ministry of Industry and Trade move to limit the licensing of new foreign-invested steel projects that do not make efficient uses of electricity.

The action followed Electricity of Viet Nam's complaints about the steel industry's excessive power consumption.

TLH closed up 4.94 per cent to VND17,000 per share.

Profit-taking was heavier on the Ha Noi Stock Exchange yesterday, sending the HNX-Index into sharp decline. The index closed off by 2.26 per cent to 132.59 points.

Volume exceeded that on the HCM City bourse, however, reaching 58.7 million shares worth a total of VND1.4 trillion.

PetroVietnam Construction (PVX) was again the leading share by volume, with 6.7 million changing hands.

Foreign investors participated in the profit-hunting wave, becoming net sellers on the northern bourse of 325,800 shares, worth a net of VND7.7 billion ($395,000).

Viet was encouraged, however, that 46.5 per cent of buy orders in Ha Noi yesterday were placed at the highest prices, suggesting significant capital continued to cycle back into the market and suggested a renewed rally today was possible. — VNS

(to be updated)