Markets

Vietnam index ends down on profit-taking, central bank rule

Reuters Hanoi | Updated on January 24, 2018 Published on January 14, 2015

Vietnam’s benchmark VN Index slipped from a seven-week high to close down 0.62 per cent on Wednesday on profit-taking and as the central bank decided to implement without delays a ruling that will limit banks lending for stock investment.

PetroVietNam Gas, Vietnam’s top firm by market value, led the losers to fall 3.73 per cent as global oil prices hovered around a six-year low and after a streak of five gains following the firm’s share repurchase plan.

Most other blue chips fell, including dairy product maker Vinamilk with a 0.98 per cent loss, as investors booked profits from recent gains and switched to small- and mid-cap equities.

The central bank said it would implement on time a circular that will limit banks’ loans for stock investments at 5 per cent of a bank’s registered capital from February 1, despite market expectations of a delay to boost funds inflows.

But selling was not too strong, while some adjustments could buoy further gains this quarter amid a rebound of foreign funds and hopes of good corporate results, analysts said, expecting the index to reach 640 points in coming months.

“It’s positive that money is still within the market,’’ manager Nguyen The Minh of Viet Capital Securities said.

Published on January 14, 2015
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