HCMC – The local market continued to rally in the first session of this month although the uptrend slowed down compared to the two previous sessions. The VN-Index gained 3.67 points, or 0.81%, against the day earlier to close at 458.75.
Liquidity, however, declined with 47 million shares worth VND1.2 trillion changing hands, falling by 15.4% and 20.7% from the session earlier respectively. On the southern bourse, investors bid for 94 million shares, falling by 7.6% against the previous day, while they offered 76 million shares, a 0.3% decrease.
The market started the day in positive territory but fell back during the second matching phase to hit a daily low of 450.93. It then rebounded sharply and finally closed at the high.
Some 127 stocks gained grounds while 83 others declined, including 49 stocks shooting to the ceiling prices and six stocks plunging to the floor prices. Blue-chips were lower as EIB, FPT, STB and PVF decreased or closed at the reference prices.
Investment and Trading of Real Estate Co. (ITC) became the most active stock in terms of liquidity and it closed up 4.7% to VND24,400 with around two million shares traded. Refrigeration Electrical Engineering Corp. (REE) ranked second, rising 0.6% to VND17,200 on the volume of 1.4 million shares.
Foreign participation decreased on Thursday as the investors bought 3.6 million shares worth over VND151 billion and offloaded 2.2 million shares worth VND102 billion. They accounted for 12.3% and 8.4% of the market’s buying and selling value respectively.
The Hanoi market also rose again in similar turnover of around VND1 trillion. The HNX-Index added 3.26 points, or 2.54%, from the previous session and ended the day at 131.66.
The market saw 235 stocks rising while 63 stocks dropping, of which 25 stocks went to the ceiling prices and four stocks dropped to the floor prices. Foreigners turned net sellers and accounted for 0.47% and 0.51% of the market’s buying and selling value respectively.
HCMC Securities Corp. (HSC) in its comment said the markets both closed higher again with the VN-Index breaking through technical resistance level at 455 points while the Hanoi market managed another impressive rally. Volumes fell however as many investors were sidelined ahead of the long weekend. Foreign investors were also less active and market breadth narrowed somewhat.
“Friday’s close sends quite a positive signal as we have predicted a correction ahead of the national holiday following recent strong gains. However, buying momentum remained quite strong on both exchanges and early weakness was met by another wave of buying which took us higher again by the close,” HSC added.
Viet Dragon Securities Co. said investors became more optimistic given five rising sessions in a row. “As stock prices remain cheap, it is not too risky for long-term investors to buy shares now. However, investors should be cautious before the central bank give its final decision on Decree 13 and the macro economy has more supporting news,” the broker said.
