HCMC – The local market continued the uptrend, gaining almost ten points in the VN-Index in the second straight rising session Wednesday given strong rallies of many large caps. The VN-Index added 9.76 points, or 2.76%, against the previous session to close at 460.72.
The market opened higher and climbed slowly until the end of the second matching phase when buying suddenly accelerated and the index rose sharply to close at the daily high of 460.72.
Bids on the Hochiminh Stock Exchange were almost unchanged from the previous day at 72 million shares while offers rose 18% to over 64 million shares. Ending the session, there were 38.3 million shares worth VND1 trillion traded, rising by 15.3% and 25% against the session earlier respectively.
Advancers far outnumbered losers at 210 to 26, including 35 stocks hitting the ceiling prices and four others plunging to the floor prices.
Sacombank (STB) took the lead in terms of liquidity and it ended the day up 0.6% at VND16,900 per share on the volume of two million shares. Tan Tao Investment Industry Corp. (ITA) came next, surging 4.8% from the day earlier to VND17,400 with 1.4 million shares traded.
Foreign participation was also strong as the investors acquired 7.5 million shares worth VND271 billion and offloaded 2.6 million shares worth VND100 billion. They accounted for 26.8% and 9.9% of the market’s buying and selling value respectively.
The Hanoi market made further gains on Wednesday but in lower turnover of VND639 billion. The HNX-Index rose by 2.82 points, or 2.31%, from the previous session and ended the day at 124.84.
There were 273 stocks rising while 39 stocks dropping, of which 20 stocks went to the ceiling prices while three stocks dropped to the floor prices. Foreigners were net buyers and accounted for 1.5% and 0.7% of the market’s buying and selling value respectively.
HCMC Securities Corp. (HSC) in its comment on Wednesday said the market rebounded further as foreigners continued to buy blue-chips fairly aggressively. Turnover was a little higher overall although this was entirely due to an increase in trading in the southern bourse. For the second consecutive day, foreigners were very active buyers and this pushed the VN-Index higher.
“The market has turned around quite abruptly with blue-chips leading the way and apart from the earnings news perhaps some investors are also hopeful that interest rates can indeed fall by the October 15th deadline announced by the Vietnam Banking Association. That would indeed be wonderful news but we remain a little cautious given the upside pressure on CPI (consumer price index) from faster money supply and credit growth and a weaker currency.
“However, for the next day or two, we are likely to see some further upside but we would caution investors not to chase up prices. We keep our medium to long-term positive stance but still think that the fourth quarter will be a tricky time for stocks,” the broker added.
