HCMC – Strong demand lifted the local market above the 460-point level on Thursday after two consecutive losing sessions. The VN-Index gained 5.24 points, or 1.14%, from the previous day to 463.68.
Liquidity, however, declined sharply with nearly 48 million shares worth VND1.2 trillion traded, falling by 14.5% and 16.8% against the previous session respectively. Bids decreased a slight 1.2% from a day earlier to 93 million shares while offers declined 10.7% to 81 million shares.
The market opened higher and after hitting a daily high of 465.69, it fell back during the second matching phase before finally recovering to close just below the highs.
The number of gainers far outnumbered that of losers at 184 to 33, including 34 stocks shooting up to the ceiling prices and two others dropping to the floor prices.
Vietnam Ocean Shipping Co. (VOS) was the most actively traded stock in terms of liquidity, closing up 4.8% to VND15,100 per share with 2.7 million shares traded. Saigon Securities Inc. (SSI) ranked second, advancing 1.75% from the previous day to VND29,000 on the volume of 1.6 million shares.
Foreigners remained on the buying side on Thursday as they bought 3.1 million shares worth VND123 billion and offloaded 1.3 million shares worth VND106 billion. They accounted for 10% and 4.6% of the market’s buying and selling value respectively.
The Hanoi market also recovered its lost ground but in lower turnover of nearly VND1.2 trillion. The HNX-Index added 3.65 points, or 2.75%, against the session earlier and ended the day at 136.24.
There were 248 stocks rising while 55 stocks falling, of which 21 stocks went to the ceiling prices while four stocks dropped to the floor prices. Foreigners were net sellers and accounted for 0.4% of the buying value and 0.5% of the selling value.
Fiachra Mac Cana, managing director of HCMC Securities Corp., said the markets recovered some lost ground on Thursday as expectations rose once again for a favorable outcome to the ongoing discussions on a revised timeline for banking regulatory reform. Volumes, however, fell and strength in early trading did fade somewhat during the day although the VN-Index managed to close on a reasonably firm note.
“The market is still unsure of when any announcement of Decree 13 might come but we suspect it will take a little more time as key data is apparently still being gathered from banks and only after that is completed can an assessment of the current situation begin,” he said.
Mac Cana added that “stocks are likely to trade in a fairly narrow range in the meantime. So, short-term daily market movement may be dominated by rumors and speculation in the absence of hard news.”
Vietnam International Securities Co. said the market had rallied again following the global trend. Excluding from temporary psychological factors, the market movement will much rely on macro economic information and business results of listed firms in the third quarter of this year.
