Traders at a trading platform of Saigon Securities Inc in Hanoi (Photo: VNA)Hanoi (VNA) – Shares edged down on both national stockexchanges on March 13 amid volatility caused by portfolio restructuringactivity of exchange-traded funds, as well as possibility of an interest ratehike by the US federal reserve.
The benchmark on the HCM Stock Exchange dropped 0.3 percent to close at 710.2points. The southern index fell 1.1 percent in the last three sessions.
On the Hanoi Stock Exchange, the HNX-Index dropped 1.3 percent to end at 87points. The northern index gained 1.7 percent last week.
Blue chips were the main drag, as only ten stocks of the top 30 largest sharesby market value and liquidity advanced, while 18 tumbled.
Big losers included banks and financial agencies, such as Vietcombank (VCB),Vietinbank (CTG), BIDV (BID) and Bao Viet Holdings (BVH), as well as privateequity firm Masan Group (MSN).
Meanwhile, energy stocks, including PV Gas (GAS), PetroVietnam Drilling andWells Service (PVD), PetroVietnam Technical Services (PVS) and PetroVietnamDrilling Mud (PVC) fell between 0.6-2 percent due to negative impacts of globaloil prices.
On the bright side, property developer Novaland Investment Group (NVL) rose bythe daily maximum 7 percent permitted on the HCM Stock Exchange to 72,700 VND (3.19USD) a share thanks to active trade by foreign investors.
On Saturday, MVIS Vietnam under the VanEck Vectors Vietnam ETF (exchange tradedfund) announced Novaland would be added into the basket of its ETF VNM despitefalling short of its six-month trading time requirement. (Novaland sharesstarted the first trading day on December 28, 2016.)
Meanwhile, shares of Tan Tao Investment Industry Corp (ITA) were eliminatedfrom the basket. ITA prices sank 6 per cent to settle at 3,980 VND a share.
“The market is forecast to see a number of changes this week, concerning theportfolio review of ETFs and the FOMC (Federal Open Market Committee) meeting’sresults,” said Tran Duc Anh, a stock analyst at Bao Viet Securities Co.
Besides ETFs’ portfolio restructuring activity, investors are paying close attentionto the US Fed’s meeting this week, in which market insiders expect a first ratehike this year. If this happens, the market could see negative movements onfears of foreign investment moving out of the local market.
Liquidity remained high with nearly 191 million shares worth a combined 4trillion VND (175.4 million USD) traded in the two markets.-VNA
VNA
