VN-Index edges down slightly after profit-taking

The Ho Chi Minh Stock Exchange continued to correct on Thursday, as investors remained in selling mood to take profits from several previous rises on the market.

VN-Index of 181 leading shares crept down for the second straight session, slipping 1.5 points, 0.4 percent, to close at 376.75.

Trading volume was 50.6 million shares worth VND1.5 trillion (US$84.3 million) as 80 shares rose, 27 were unchanged and 74 fell.

Analysts said investor confidence remained high as the National Assembly’s Financial and Budgetary Committee has agreed with the government’s proposal on granting personal tax exemption for capital investments and transfers, including that of securities.

Brokers said blue chips sold heavily today while bulk bucks poured into small caps in plastic and rubber sectors like DNP, HLA, DPC and TPC.

Many HCMC-based brokerages expected the market to correct further before bouncing back.

Petrolimex International Trading Joint-Stock Company (PIT), an industrial and agricultural commodities trader, slid 2.1 percent, to VND14,200.

Net income of the Ho Chi Minh City-based company fell to VND2.5 billion ($140,600) from VND10.7 billion a year earlier, according to a company statement on the exchange’s website today.

Sales plunged 51 percent to VND202.6 billion from a year earlier, the statement said. The company did not explain the reasons for the declines in profits and sales.

Saigon Telecommunication & Technology Corp. (SGT), a provider of Internet and software services - known as SaigonTel, rose 4.9 percent, to VND27,600, the highest since December 31.

Kinh Bac City Development Share Holding Corp., Vietnam’s biggest developer by market value, registered to buy almost 1.3 million shares to increase its stake to 22.3 percent in SaigonTel, or 13 million shares, SaigonTel said in a statement on the exchange’s website after the market closed yesterday.

At the smaller bourse in Hanoi, the HaSTC-Index closed lower 0.71 percent at 130.24.

Reported by Thieu Gia

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