Stock prices hit ceiling
By Phuong Thao - The Saigon Times Daily
HCMC – The local market moved up strongly in the third consecutive rising session on Monday with the VN-Index jumping a staggering 15.41 points, or 3.59%, from the day earlier to close at 444.55. This was the strongest increase of the index since early this year.
The market started the day sharply higher and subsequently climbed further to hit the daily high of 445.44 during the second matching phase before trading close to that level for the remainder of the day.
Liquidity, however, stayed low with 34.6 million shares worth VND849 billion changing hands, increasing by 1.5% in volume but decreasing by 4.7% in value against the previous session.
Up to 242 stocks on the bourse advanced on Monday while 11 others closed in the red, including 195 stocks shooting to the ceiling and two stocks plunging to floor prices.
Vinh Son-Song Hinh Hydropower Co. (VSH) became the most actively traded stock, but it ended the day flat at VND12,500 with 2.6 million shares traded. Quoc Cuong Gia Lai Co. (QCG) came next, adding 4.8% against the session earlier to VND28,100 on the volume of around one million shares.
Foreigners were still on the selling side as they acquired 2.9 million shares worth VND118 billion and offloaded 4.4 million shares worth VND138 billion. They accounted for 14% and 16.3% of the market’s buying and selling value respectively.
The Hanoi market also surged strongly on Monday but turnover dropped slightly to VND471 billion. The HNX-Index added 6.6 points, or 5.58%, from the previous session and ended the day at 124.88.
The northern market saw 304 stocks rising and 17 stocks falling, of which 174 stocks went to the ceiling prices while only one stock dropped to the floor price. Foreigners were net sellers again and accounted for 0.3% and 2% of the market’s buying and selling value respectively.
Fiachra Mac Cana, managing director of HCMC Securities Corp., said the markets bounced sharply on Monday on technical buying and volumes were quite thin suggesting on this occasion an absence of sellers. Bids towards the close in HCMC hit 24 million shares, suggesting a rush of pent-up buying as some investors sought to close out positions as the market turned. Market breadth widened significantly while foreign participation increased.
“Our technical analyst sees significant resistance at around 455 points on the VN-Index and above that the 200 day moving average at 500 points or so remains a very formidable barrier medium term… But, for the time being we will move higher,” Mac Cana added.
Vietnam International Securities Co. said liquidity remained low on the market, suggesting a strong decline in supply although demand surged on Monday.
“Decree 13 will continue to control the index movement and investors should watch out and avoid hasty decisions before sharp rises or falls on the market,” the broker said.