Market rebounds in lower liquidity
By Phuong Thao - The Saigon Times Daily
HCMC – The local market slightly recovered as demand for stocks picked up at the end of on Wednesday’s session, sending the VN-Index up 1.07 points, or 0.25%, from the day earlier to close at 423.57.
The market opened in positive territory and immediately moved up several points to hit the daily high of 424.52 before reversing direction and falling back into the red. A late recovery then brought the index just into the black at the end of the morning session. In the afternoon, trading fluctuated in a narrow range before stocks jumped almost a point just at the close.
On the southern bourse, liquidity remained sluggish as both volume and value slumped around 24% from the previous day to 23.7 million shares worth VND349 billion.
Gainers outnumbered losers by 131 to 96, including 27 stocks hitting the ceiling prices and 20 others plunging to the floor prices. In terms of the VN-Index, MSN, VIC, VCB and HAG made the biggest positive contribution while GAS, VNM and BVH put most negative pressure on the index.
Tan Tao Investment Industry Corporation (ITA) remained the most actively traded stock with 1.4 million shares changing hands, followed by Tay Bac Minerals Investment Company (KTB) and Sacom Development and Investment Corporation (SAM) with over 1.1 million shares traded each.
Foreigners were barely net buyers while their overall participation levels were low, making up 8.7% and 8.5% of the market’s buying and selling value respectively.
The Hanoi market rebounded nicely although turnover slipped to VND529 billion. The HNX-Index advanced 0.9 point, or 1.29%, from the session earlier and ended the day at 70.48.
There were 141 stocks rising while 65 stocks declined, of which 32 stocks went to the ceiling prices and 24 stocks dropped to the floor prices. Foreigners accounted for 1.8% of the buying value and 2.5% of the selling value.
Viet Capital Securities Co. (VCSC) said that on the surface, liquidity seems to hold steady, but nearly 40% of turnover on the exchange was for SQC shares.
VCSC also noted that trading was active on HBB and SHB after the central bank approved the two banks’ merger, with both stocks jumping to their upper limits. Besides, there were over five million unmatched orders for HBB in part helping to reverse overhang on the northern bourse from the previous session.
“There are over 25 million unmatched bids in total on both exchanges which could signal a positive opening for Thursday. Accumulating at the support levels is a reasonable option but we are still waiting for a break above 425-430 points and 72 points for firmer ‘buy’ signals,” the broker added.