HCMC – The local market recovered slightly on Thursday after three consecutive falling sessions, with the VN-Index adding 3.18 points, or 0.75%, against the previous day to 427.07.
The market opened higher and after hitting a daily high of 429.12, it abruptly reversed direction and fell sharply towards the end of the second matching phase. The index then staged a second rally and finally closed just below the highs.
Liquidity, however, declined sharply as just around 39.7 million shares worth VND957 billion were traded, decreasing by around 23% and 25% against the previous session respectively. Investors demanded 73.6 million shares, increasing by 15.7% from the day earlier, while they offered over 67 million shares, a 23% decrease.
There were slightly more gainers than losers at 112 to 106. Twelve stocks went to the ceiling and 28 others plunged to the floor prices. Large caps including PVF, PVD and BVH performed well and helped keep the market up during the day.
Refrigeration Electrical Engineering Corp. (REE) took the lead in terms of liquidity and it gained 3.2% to VND16,000 per share with over 1.2 million shares traded. Saigon Securities Inc. (SSI) followed, adding 0.8% against the day earlier to VND25,500 on the volume of around one million shares.
Foreigners shifted to the selling side as they bought 3.3 million shares worth VND119 billion and offloaded 3.5 million shares worth VND127 billion. They accounted for 12.4% and 13.3% of the market’s buying and selling value respectively.
Fiachra Mac Cana, managing director of HCMC Securities Corp., said the market managed a mild recovery on Thursday but the lower volumes and limited price movement of most stocks means the trend change lacked conviction.
“After falling so sharply this week, sellers took a breather on Thursday as shown by the sharp decline in market offers during the day compared to Wednesday. This allowed for a technical rebound not surprising given some indicators have been signaling an over-sold market for several days. However, if anything, on Thursday’s movement by its very limitations suggests some further downside risk to come over the next few days,” Mac Cana said.
APEC Securities Co. said the mild rally on Thursday could not help the market escape the downward trend. “We expect a higher trading volume within the next sessions for a clearer sign of bottoming out. Short-term investors can acquire shares now but they should be cautious as people will offload shares if the market increases,” the broker said.
The Hanoi market also edged higher but in lower turnover of VND682 billion. The HNX-Index added 0.72 point, or 0.61%, from the previous session to close the day at 119.53.
There were 136 stocks rising while 150 stocks were down at closing, including five stocks hitting the ceiling prices and 14 stocks dropping to the floor prices. Foreigners were active net sellers and accounted for 1% and 2.7% of the market’s buying and selling value respectively.
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