Shares advance second day on low liquidity
On the Ho Chi Minh Stock Exchange, the VN-Index increased 0.62 per cent to close Wednesday at 1,301.53 points. The southern market’s index rose nearly 2 per cent on the previous day.
Meanwhile, the HNX-Index on the Ha Noi Stock Exchange grew 0.92 per cent to end at 333.04 points. The northern market’s index leapt more than 2 per cent on Tuesday.
Overall market breadth was positive with 18 of 25 stock groups gaining value, of which information communication technology (ICT), construction and ancillary production were the biggest gainers with average growth of 3.1 per cent, 2.9 per cent and 2.4 per cent, respectively.
FPT Corp (FPT), Investment and Industrial Development Corp (BCM), Vinhomes (VHM), Refrigeration Electrical Engineering Corp (REE), Development Investment Corp (DIG) and Vincom Retail (VRE) were also among the top shares lifting the VN-Index.
The banking sector – the market thermometer – also performed well with 13 of the total 20 listed banks posting gains. Eximbank (EIB) hit the ceiling of a 7-per-cent growth while bigger banks such as Vietinbank (CTG), BIDV (BID), Military Bank (MBB) and Asia Commercial Bank (ACB) increased between 1.7-6 per cent each.
Seafood and food-beverage stocks fell, however, with the three biggest shares by market capitalisation – Masan Group (MSN), Vinamilk (VNM) and Sabeco (SAB) – dropping 3.6 per cent, 1.6 per cent and 0.9 per cent, respectively.
Liquidity continued to decline as just 468 million shares worth VND12.6 trillion changed hands in the two markets, down more than 30 per cent in both volume and value compared to Tuesday’s levels.
“The market's downtrend was tamed before the vital support area of 1,230 points of the VN-Index and reversed. However, we think this improvement is not great because the volume just stopped at the average of 20 sessions, and there was a divergence with many stocks that could not recover,” said Phuong Nguyen, a stock analyst at Viet Dragon Securities Co.
Phuong said the market may continue the recovery but will re-test the supply and demand pressure. Therefore, investors should slow down to observe the market and temporarily take advantage of this recovery to restructure their portfolio to minimise risk in stocks that are under great selling pressure.
Foreign traders remained net sellers on HCM City’s bourse but their sales slowed down to a net value of VND95 billion on Wednesday. They were net buyers on Ha Noi’s exchange, responsible for a net buy value of nearly VND4 billion.
- Netflix unveils winners of 'My Vietnam' short film competition
- Portrait of feminine lawyer Truong Thi Hoa, who is predicted to face as much as defend Ms. Nguyen Phuong Grasp
- Stena RoRo delivers extended E-Flexer RoPax to Stena Line
- Electrolux launches a Sustainability Squad to advocate for more sustainable living
- Shinhan Life Vietnam and Shinhan Bank Vietnam sign insurance business partnership
Portrait of feminine lawyer Truong Thi Hoa, who is predicted to face as much as defend Ms. Nguyen Phuong Grasp
Shinhan Life Vietnam and Shinhan Bank Vietnam sign insurance business partnership
Ha Giang Province facilitates rural industrial production
Projects on smart factory development launched in Vinh Phuc
Terra Now Has A Plan to Get well UST Peg! Will It Work?