Bank stocks a drag on VN-Index

By Hung Le   December 16, 2019 | 03:11 am PT
Bank stocks a drag on VN-Index
An investor watches stock market figures on a display at a brokerage in Hanoi. Photo by Reuters.
The VN-Index fell 4.71 points, or 0.49 percent, to 961.47 points Monday, with most banking stocks closing in the red.

Most banking stocks either lost or remained at opening prices. CTG of VietinBank and VCB of Vietcombank, two of Vietnam’s biggest state-owned lenders, fell 2.7 percent and 1.5 percent respectively, while BID of BIDV remained unchanged.

In the mid-sized lenders’ bracket, MBB of state-owned Military Bank, HDB of private HDBank, and VPB of private VPBank, lost 1.8 percent, 1.4 percent, and 0.3 percent respectively.

On the Ho Chi Minh Stock Exchange (HoSE), Vietnam’s main bourse on which the VN-Index is based, 178 stocks lost and 141 gained. The HoSE accounts for nearly 90 percent of market capitalization of all Vietnam’s listed companies.

Liquidity of order-matched transactions rose slightly over the previous session to VND3.1 trillion ($133.4 million), the highest liquidity since December 16, but this was still lower than the November average of VND3.5 trillion ($150.6 million).

The VN30 index for Vietnam’s 30 biggest market cap stocks also shed 0.44 percent, with 14 losing and 13 gaining. Eight stocks lost at least one percent this session.

VHM shares of real estate developer Vinhomes, a subsidiary of Vietnam’s biggest private conglomerate Vingroup, led losses with 3.4 percent this session, while VIC of its parent company fell 0.2 percent.

In the other direction, BVH of insurance giant Bao Viet surged 6.9 percent to hit its ceiling price after Japanese insurance firm Sumitomo Life, which holds a 17.48 percent stake, registered to buy more than 41 million more shares, or a 4.61 stake, on HoSE Monday morning.

NVL of real estate developer Novaland went up 1.8 percent, while CTD of construction giant Coteccons and DPM of state-owned Petrovietnam Fertilizer & Chemicals Corporation both rose 1.5 percent.

Foreign investors were net buyers to the tune of VND95.5 billion ($4.1 million), with buying pressure mostly on MBB shares of Military Bank and VNM of dairy giant Vinamilk.

Meanwhile, the HNX-Index for stocks on the Hanoi Stock Exchange, Vietnam’s second main bourse for small and mid-cap stocks, added 0.27 percent, while the UPCoM-Index for Unlisted Public Companies fell 0.36 percent.

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