Hanoi (VNA) - Shares dropped on both local markets on May 8 as investorsswitched investments from large-cap stocks to mid- and small-cap ones, puttingblue chips into negative territory.

The benchmark VN Index on the HCM Stock Exchange inched down 0.16 percent toclose at 718.86 points. Vietnam’s key index has lost total 0.4 percent afterthe last two sessions.

TheHNX Index on the Hanoi Stock Exchange fell 0.65 percent to end at 89.13 points,retreating from a gain of 0.2 percent made on Friday.

Markettrading liquidity improved from the previous session. More than 277 millionshares were traded on both local bourses, worth 5.85 trillion VND (260.2million USD).

Lowinvestor confidence sent large-cap stocks down with two-thirds of the largest30 companies by market capitalisation falling.

Amongthe 10 largest listed firms, FLC Faros Construction (ROS) lost 0.9 percent,dairy producer Vinamilk (VNM) was down 0.5 percent, and Vietcombank (VCB)decreased by 1 percent.

Otherlarge-cap stocks that declined were Tien Phong Plastic (NTP), Asia CommercialBank (ACB) and Saigon-Hanoi Bank (SHB), which slid between 1.1 percent and 4.1 percent.

Thetwo largest agriculture and farming companies, Hoang Anh Gia Lai (HAG) and itssubsidiary Hoang Anh Gia Lai Agriculture International (HNG) dipped 6.6 percentand 6.8 percent, respectively.

Thestocks of both companies were put on the designated list and the decision willcome into effect on May 12 as the two firms have reported a loss of 1.1trillion VND for Hoang Anh Gia Lai and 984.8 billion VND for its agriculturearm.

Theenergy sector finished down on Monday as global oil prices reversed to tradearound the reference price levels after remaining positive in the morning.

Brentcrude inched up 0.1 percent to trade at 49.15 USD a barrel, erasing the gainsmade in the earlier half of the day as investors and analysts were kept waitingon hopes for a prolonged output cut agreement between the Organisation ofPetroleum Exporting Countries (OPEC) and other large exporters.

Onthe positive side, mid-cap and small-cap stocks, especially real estate firms’shares, proved a safe haven for short-term investors.

Sharesof property developers became attractive to investors as they were ahead ofcompanies that are about to pay dividends in cash and bright prospects for thedomestic real estate market.

Thebenchmark VN Index fell for a second day as it attempted to test the lowersupport levels, Saigon-Hanoi Securities (SHS) said in its report.

However,the May 8 fall was not something that investors should worry about as strongdemand and purchases for low-valued stocks remained strong, SHS said.

Thecurrent conditions suggest that the VN Index would fall back to the range of715 and 718 points before recovering and approaching the challenging level of720 points, the northern brokerage firm added.-VNA