Hanoi (VNA) - Shares edged lower on the two exchanges on March 2 on risingprudence as investors found current valuations no longer attractive.

Onthe HCM Stock Exchange, the VN-Index sagged for a third day with a loss of 0.3 percentto close at 707.5 points. The southern index has declined 1.4 percent in the lastthree trades.

Onthe Hanoi Stock Exchange, the HNX-Index decreased marginally to 86.6 points bythe end of the sessions. The northern market index dropped 0.4 percent in thepast three days.

Large-capstocks slumped with 18 of the 30 largest shares by market value and liquidityon the main bourse in HCM City losing value, while only eight advanced.

Losersincluded the biggest stocks in major stock groups like dairy giant Vinamilk(VNM), Vietcombank (VCB), BIDV (BID), Vietinbank (CTG), PV Gas (GAS), privateequity Masan Group (MSN), insurer Bao Viet Holdings (BVH), Saigon SecuritiesInc (SSI) and IT group FPT (FPT).

“Excitementon the market has waned after the earnings report season. Current informationis not supportive enough to boost the market,” analysts at FPT Securities Cowrote in a market report.

Accordingto the report, current valuations on the stock market are not appealing enoughto attract new investors, though the VN-Index has retreated to the strongsupport area of 705 points.

Onthe bright side, budget airline Vietjet (VJC) hit the one-day limit rise of 7 percentfor a third day, settling at 123,500 VND (5.42 USD) per share. The share pricehas gained 37.2 percent after its debut on February 28.

SteelmakerHoa Phat Group (HPG) also rose for a second day with a combined rise of 4.9 percentafter the company said it would raise profit targets by 20 percent in 2017 to 6trillion VND.

Thesetwo shares also topped the most-bought list of foreign investors on March 2 withnet values of 143.4 billion VND and 26.3 billion VND, respectively.

Propertystocks continued to attract investments. FLC Group (FLC), Tasco (HUT), NovalandInvestment (NVL), Hoang Quan Consulting-Trading-Service Real Estate (HQC), KinhBac City Development (KBC) and Khang Dien Housing Development (KDH) were amongthe most heavily traded stocks on the two exchanges.

“Moneyis focusing on small- and mid-cap stocks. Volatility in the last two sessionsis exposing high risks to the market,” analysts at BIDV Securities Co wrote ina note, predicting the VN-Index would fluctuate around 710 points.

Foreigninvestors were net buyers in HCM City’s market for a net value of about 125billion VND, but they were net sellers on Hanoi’s bourse for 2.3 billion VND.-VNA