Stocks grow slower on profit-taking

Shares rose on both local markets on May 29 but market growth slowed down during the day as banks and brokerages failed to extend gains.

Investors at Bao Viet Securities Company. (Photo: VNA)

Investors at Bao Viet Securities Company. (Photo: VNA)

The benchmark VN Index on the HCM Stock Exchange edged up 0.38 percent to close at 746.25 points. The key stock index has risen total 0.6 percent after two days.

The HNX Index on the Hanoi Stock Exchange inched up 0.13 percent to end at 93.81 points. The northern market index has had a four-day rally of total 2.1 percent.

More than 315.6 million shares were traded on the two local bourses, worth 5.83 trillion VND (259.3 million USD). Trading figures on May 29 were slightly up compared to last week’s daily average numbers.

The VN30 Index, which tracks the performance of the 30 largest companies by market capitalisation, was divided into two sides with gainers balancing losers by 14 to 14 while two others remained flat.

The strongest gainers among the 14 gaining stocks on the VN30 Index included steelmaker Hoa Sen Group (HSG), Thanh Thanh Cong Tay Ninh Sugar JSC (SBT), Sacombank (STB) and Vietinbank (CTG).

HSG hit its daily trading limit of 7 percent. The company’s chairman has registered to sell nearly 9.6 million shares. The transaction will reduce his ownership by 4.79 percent to 8.36 percent.

SBT surged 6.3 percent after its M&A plan with Bien Hoa Sugar JSC (BHS) was approved by shareholders of the two companies last week. BHS also hit its daily trading limit of 7 percent.

The other two stocks, STB and CTG, jumped 3.3 percent and 3.4 percent, respectively. Sacombank has delayed its annual shareholder meeting to June 30. Its restructuring plan has also been approved by the central bank.

Shares of brokerages took the leading role on the opposite side as they were hit by intraday profit-taking, especially after they made strong increases in the morning session.

The worst decliners included HCM City Securities (HCM), Saigon-Hanoi Securities (SHS), Saigon Securities (SSI) and Bao Viet Securities (BVS).

The market began the trading week similar to last week as the growth of local stock indices was tackled by pressure from investors’ selling high-priced stocks, Saigon-Hanoi Securities said in a report.

The benchmark VN Index would struggle in the range of 743 and 748 points on May 30, SHS said, adding that it would need a strong boost to overcome the level of 748 points and affirm its uptrend.

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