Vietnam Stock Market News

Vietnam Financial News

Blue-chip sell-off drags market down 2009-08-26 - Bloomberg

Ho Chi Minh City shares advanced in early trade on Wednesday, tracking overnight increases on Wall Street, but the gains were reversed late in the day by a blue chip sell-off.

The VN-Index, a gauge of 166 companies and four closed-end funds, dropped for the first time in six days, retreating 0.6 percent to close at a three-day low of 525.95.

Of the HCMC-listed stocks, 78 rose, 54 fell and 38 were unchanged on the day. More than 52 million issues were traded.

Most banks and financial firms, also market leaders, finished in the red, with Sacombank (STB) dropping 0.3 percent to VND38,000, Vietinbank (CTG) slipping 0.5 percent to VND38,600, PetroVietnam Finance (PVF) dropping 2.1 percent to close at VND46,200, and Bao Viet Insurance & Finance Group (BVH) closing 3.3 percent weaker to VND41,300.

High selling pressure from profit-taking pushed the index down, traders said, adding that it was normal to have such a correction after five days of gains.

Foreign investors remained net buyers on Wednesday, pouring VND19.8 billion (US$1.1 million) in net value into the market.

In Hanoi, the HNX-Index clawed back some of its losses, climbing 0.46 percent to finish at 164.39.

Winners and losers

FPT Corporation (FPT), Vietnam’s largest publicly traded software maker, dropped 1.2 percent to close at VND86,000.

FPT’s Vice-Chairman Le Quang Tien will sell 350,000 shares, starting Thursday, to cut his holdings to around 1.9 million shares, the Hanoi-based company said in a statement on the exchange’s website Tuesday.

Ho Chi Minh City Securities Corp. (HCM) fell for a second straight day, losing 1.5 percent to close at a four-day low of VND67,000.

Ho Chi Minh Infrastructure Investment Co. will sell 600,000 shares in the brokerage to cut its stake to 725,238 shares, or 1.84 percent of the total, from 3.36 percent earlier, according to a statement on the exchange website.

General Forwarding & Agency Joint-Stock Co. (GMD), Vietnam’s largest listed freight-forwarding company, climbed 4.9 percent to VND74,500, its highest point since September 4.

The company, known as Gemadept, said it would “definitely” start construction of the Cai Mep port project by the end of the first quarter next year as scheduled, countering speculation that the company may sell the port project, Chief Executive Officer Do Van Minh said in a telephone interview Wednesday.

Gemadept will also start building Le Loi Plaza in Ho Chi Minh City in the first quarter next year, Minh said, without elaborating on any details.