Rising streak continues for fifth day
By Phuong Thao - The Saigon Times Daily
HCMC – The rising momentum on the local market built up with the VN-Index rising for the fifth successive session on Tuesday, adding 6.15 points, or 1.18% from the previous session to 527.27.
After four rising sessions with the VN-Index approaching the 530-point level, investors rushed to offload shares to earn profits, causing the index to drop slightly at the open. Trading on the bourse continued to heat up after the first matching phase with exciting transactions.
Buyers then stepped in and the market continued to gain ground during the day before hitting the daily high of 527.30 and once again closing a little below it.
On the southern bourse, investors bid for 116 million shares, increasing 12.6% from the session earlier while offers also rose 14% to around 100 million shares. Closing the day, the market’s total trading volume was 62.4 million shares worth VND2.7 trillion, increasing 11.5% and 13% from the previous session respectively.
Gainers far outnumbered decliners by almost four times at 139 to 35, of which 35 stocks went to the ceiling prices and only one stock dropped to the floor price. A large number of blue chips gained ground on Tuesday while steel, building materials, and apparel stocks attracted a strong cash flow from investors.
Sacombank (STB) again was the most actively traded stock on the bourse, rising 0.4% to VND24,000 with over 2.6 million shares traded. Meanwhile, over 2.2 million shares of Gemadept Corporation (GMD) changed hands with the stock price moving flat at VND80,500 each.
Foreign investors continued being net buyers during the day as they bought 5.9 million shares worth VND381 billion and offloaded 3.1 million shares worth VND193 billion. They accounted for 14% and 7% of the market’s buying and selling value respectively.
Fiachra Mac Cana, managing director of HCMC Securities Corp., said both markets made further gains and turnover rose again suggesting a classic momentum driven rally. “Sentiment appears quite robust with stronger demand for margin lending from retail clients who have now taken center stage,” he said.
“Indeed what we are seeing is a fairly measured rally accompanied by fairly strong selling pressure all the way up. Hence, few stocks are hitting the ceiling every day which is positive in the sense that the market is not looking over-bought as it would tend to be if we saw huge buying overhangs and many stocks running to the highs,” Mac Cana said.
He added that this situation suggested that the current rally can continue for a few more days at least before experiencing its first reversal.
Vietnam International Securities Co. in its daily report also expected the market to maintain the uptrend in today’s session and within the next days given strong buying power of foreigners.
The northern market enjoyed some gains on Tuesday as the HNX-Index added 1.47 points, or 0.86% and ended the day at 172.7. Liquidity on the bourse improved as investors traded 33 million shares worth VND1.1 trillion, increasing 14.8% and 22.3% against the previous session.
There were 124 stocks rising and 113 others falling, of which 10 stocks went to the ceiling prices while two ones dropped to the floor prices. Foreigners accounted for 4.6% and 0.4% of the market’s buying and selling value respectively.