Vietnamese shares wiped out early gains to collapse on Tuesday, dragged by banking, consumer and energy sectors on stronger profit taking.

 

The benchmark VN-Index on the Hồ Chí Minh Stock Exchange dipped 0.93 per cent to end Tuesday at 903.98 points.

 

The market’s growth momentum weakened in the later half of the morning session after the VN-Index had risen as much as 0.55 per cent.

 

The VN-Index gained 0.47 per cent on Monday.

 

Banks, consumer firms and energy companies weighed on the market as investors tried to profit from their recent gains.

 

Large-cap stocks in the three sectors such as brewer Sabeco (SAB), retailer Masan (MSN), sugar firm Thành Thành Công-Biên Hòa JSC (SBT), PetroVietnam Drilling and Well Services (PVD), Vietinbank (CTG), Techcombank (TCB) and Vietcombank (VCB) declined.

 

In the banking sector, significant gainer Sacombank (STB) plunged 3.6 per cent after having rallied total 36.6 per cent since July 31.

 

Those large-cap stocks also pulled the blue-chip tracker VN30-Index down 0.82 per cent to 856.20 points.

 

The VN30 futures due on October 15 was down 1.02 per cent to 854.1 points, indicating investors were pessimistic about the market’s short-term outlook, according to Sài Gòn-Hà Nội Securities Co (SHS).

 

Other worst-performing sectors included property, insurance, technology, wholesale, and home appliances.

 

The mid-cap and small-cap trackers on HoSE dropped 1.12 per cent and 0.65 per cent, respectively.

 

On the positive side, retail, rubber and construction were among the sectors that helped cushion the market from dropping further.

 

The General Statistics Office (GSO) on Tuesday reported Việt Nam’s nine-month GDP growth was 2.12 per cent – the lowest in 10 years.

 

The country’s economy in the past nine months had been driven by the construction sector, the GSO reported, as the sector expanded 3.08 per cent and contributed more than 58 per cent to the overall growth rate.

 

“Profit taking pressure showed signs of increasing when the VN-Index tapped the 920-930 zone,” Thành Công Securities Co (TCSC) said in its daily report.

 

“The market will see a big divergence among stocks as companies with positive third-quarter earnings outlooks may stand out,” the brokerage firm said.

 

“The VN-Index may test the 895-905 zone again to find out if the market has stabilised after its recent rally,” TCSC forecast.

 

On the Hà Nội Stock Exchange, the HNX-Index lost 1.04 per cent to 131.74 points at the end of Tuesday.

 

The northern market index advanced 1.22 per cent on Monday.

 

More than 525.7 million shares were traded on the two exchanges, worth VNĐ9.47 trillion (US$408.3 million).

 

Foreign investors net-sold total VNĐ617.4 billion worth of local shares, up 58.8 per cent from the previous day. — VNS