Monday,  Sep 24, 2018,11:17 (GMT+7) 0 0
Brokerages concerned about trade volume
Phuong Thao
Monday,  Oct 30, 2017,18:37 (GMT+7)

Brokerages concerned about trade volume

Phuong Thao

HCMC – Securities firms are still concerned about poor turnover on the HCMC exchange, saying the VN-Index may not sustain its growth momentum due to weak cash flow.

Closing last week, the VN-Index rose 1.64% at 840.37 points while the HNX-Index of the Hanoi exchange lost 1.56% at 106.54. Turnover plummeted on both markets as matching volume declined 8.2% and 5.7% versus a session earlier at 149.4 million shares and 44.4 million shares per session on the HCMC and Hanoi market respectively.

Bao Viet Securities Company said large caps will continue underpinning the market this week while the danger of deep correction is not in sight. However, the market may not make a strong surge if the trade volume remains low.

According to BIDV Securities Company, the market saw unexpected developments last Friday. The VN-Index broke through the resistance level of 840 points, which was far beyond expectation of most investors.

However, the strong increase last Friday was vulnerable as the market saw low matching volume. Like previous winning streaks, the market may undergo a correction after stock prices have jumped to new highs.
FPT Securities Company, meanwhile, predicted the main index to test the supporting range of between 830 and 835 points this week.

Last Friday’s session may fuel the sentiment of cash holders this week. However, cautious trading is recommended to avoid losses due to a possible correction, the brokerage said in a report.

Viet Capital Securities Company still predicted the market would rise further this year. The VN-Index and VN30 Index, however, may see strong volatility driven by large caps.

During last week, ROS was the top contributor to the index rally as the construction firm jumped a hefty 38.7%, followed by bookstore operator PNC with 27.2% and real estate enterprise VRC with 12.3%. Earlier, both PNC and VRC had gone through a long losing streak.

In contrast, brokerage firm CTS fell 14.7% because of gloomy business results in the third quarter. CTS reported VND54 billion in revenue, falling 17% versus the same period last year, while its after-tax profit slumped 72% at VND5.8 billion.

Mining firm FCM also lost 18.7% due to the same reason. The enterprise obtained VND154.8 billion in revenue and VND3.4 billion in net profit in the third quarter, down 16.7% and 80% year-on-year respectively.

Foreigners net sold over VND163 billion on the southern bourse while net buying over VND26 billion on the northern exchange.

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