Market plunges for third straight day

Investors watch stock prices at Vincom Securities Co. The VN-Index lost 3.34 points, or 0.73%, from a day earlier to close at 454.25 on Tuesday - Photo: Le Toan

HCMC – The local market declined for the third consecutive session on Tuesday, with the VN-Index shedding 3.34 points, or 0.73%, from the day earlier to close at 454.25 although liquidity improved sharply.

The market opened briefly higher again but subsequently fell back into negative territory and traded lower during the second matching phase to hit a low of 451.82 before rebounding slightly at the close.

On the Hochiminh Stock Exchange, demand surged 27.5% against the previous session to 53.8 million shares while supply rocketed 42.7% to over 64 million shares. Closing the day, the market’s total trading volume was 33.5 million shares worth VND884 billion, up 26% and 28% from a day earlier respectively.

Only 32 stocks advanced on Tuesday while 192 others closed in the red, including one stock hitting its ceiling price and 26 issues dropping to the floor prices.

Ocean Group Co. (OGC) took the lead in terms of liquidity but it lost 3.7% to VND28,200 per share on volume of 1.6 million shares. Vietnam Mechanization Electrification & Construction Co. (MCG) was the second biggest traded stock, adding 2.4% against the previous day to VND20,000 with 1.3 million shares changing hands.

Saigon Machinery Spare Parts Co. (SMA) began to trade over eight million shares on the bourse on Tuesday and it closed at VND15,000 against the reference price of VND16,200 with only 3,200 shares traded.

Foreign participation also recovered as investors acquired 3.8 million shares worth VND148 billion and offloaded 1.8 million shares worth 67 billion, making up 16.7% and 7.6% of the market’s buying and selling value respectively.

The Hanoi market also suffered three losing sessions in a row on higher turnover of VND587 billion. The HNX-Index fell 2.33 points, or 1.96%, against the previous session to close at 116.56.

There were 42 stocks rising while 258 others dropping back, of which one stock touched the ceiling price and 24 stocks plunged to the floor prices. Foreigners were slight net buyers again, accounting for 1.9% and 1.2% of the market’s buying and selling value respectively.

Vietnam International Securities Co. (VIS) in its report said investors once again became impatient and boosted selling towards the end of the session.

“We see that they were too cautious and declined to acquire shares at high prices, mostly because of strong fluctuations of gold and dollar prices. The Hanoi market also failed to improve as most investors still stayed on the sidelines,” VIS said.

HCMC Securities Corp. (HSC) said the buying size was more likely positioning than a major wave of buying. “However, with foreign limits in a host of blue-chips close to being full the smart money is picking up shares now while they can. We keep our positive medium and long-term stance while remaining cautious short term,” HSC said.

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Brokers see slight rebound this week

HCMC – Although the local market suffered a losing week due to low liquidity last week, securities companies predicted the VN-Index would bounce back slightly as company earnings reports are out this week.

With three rising and two falling sessions, the VN-Index lost 0.87 point, or 0.19%, from the previous week to 458.39. Liquidity plunged deeply as the daily trading volume averaged at 25.2 million shares worth VND664 billion, down 33.6% and 31.8% from a week earlier respectively.

APEC Securities Co. said listed enterprises are expected to report good earnings results this week and this will help improve investor sentiment after a couple of weeks of dull trading. This is seen as an opportunity for long-term investors to buy stocks with positive financial outlooks as share prices have fallen to attractive levels.

“The market, however, will not recover strongly this week as most investors are still cautious. The VN-Index may move within the range of 445 and 465 points given flat trading in the coming time before entering into a sustainable rally,” APEC said.

Fiachra Mac Cana, managing director of HCMC Securities Corp., said last week the market saw a couple of trends being confirmed such as the appetite of foreign investors for a number of large cap stocks and the inactivity of the domestic investment community that seemed to be paralyzed by the overhang of a number of factors. The gold price rally certainly drew some attention away from equity markets, while the renewed weakening of the dong against the U.S. dollar on the unofficial market forced people to rush to the greenback as a safe haven.

“All these factors seem to have created an environment that resembles a bear market, but if we look over a longer period we have to conclude that we are just still in the correction phase that started in October last year,” Mac Cana said.

“The short-term strategy of the domestic investment community makes it look like we are in a correction on the way down, while from a non-emotional perspective it seems more likely that we are in a correction or consolidation on the way up.

“The difficulty here is, of course, the timing of the end of the consolidation. It could easily take a number of months for the market to digest supply issues, higher average monthly inflation and the upcoming political event early next year.”

Vietnam International Securities Co. (VIS) said investors were pessimistic due to lack of positive changes of the international and domestic economy last week. Foreign participation turned lukewarm as the investors were net buyers to the tune of 4.7 million shares worth VND282 billion, falling 3.8 times and 2.5 times from the previous week respectively.

“Liquidity will be the biggest challenge for the market this week. However, business results of listed firms will help support the market rebound as positive reports will draw the attention of investors,” VIS said.

Meanwhile, the Hanoi market shed two points, or 1.64%, from the previous week, to close at 119.69. The market’s daily trading volume averaged at 18.8 million shares worth VND421 billion, both down around 18% from a week earlier. The market is predicted to recover slightly this week.

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Market barely inches up, trade low

HCMC – The southern stock market made a fractional gain in the second straight rising session on Thursday, in line with rallies in the world, but liquidity remained depressed. The VN-Index rose a mere 0.96 point, or 0.21%, from the day earlier to 458.66.

Demand on the Hochiminh Stock Exchange dropped 13.7% against the previous session to nearly 49 million shares while supply rose 6.3% to 49.4 million shares. Closing the day, only 23.2 million shares worth VND597 billion changed hands, falling by 7.2% and 14.5% against the session earlier respectively.

The market opened higher and quickly jumped to above 460 points before sellers stepped in, pushing the index down to 457.88 at the end of the continuous matching phase. The market then recovered slightly and finally closed in the positive territory.

The number of losers was still higher than that of gainers at 105 to 84, of which six stocks ended the day at their ceiling prices and nine others plunged to the floor prices.

Vietnam Mechanization Electrification & Construction (MCG) became the biggest traded issue, jumping 4.7% to VND17,900 per share with over one million shares traded, followed by Société De Bourbon Tay Ninh Co. (SBT), which closed flat at VND11,800 on the volume of 717,000 shares.

Foreigners were still net buyers as they bought 3.1 million shares worth VND115 billion and sold two million shares worth VND40 billion, accounting for 19.4% and 6.7% of the market’s buying and selling value respectively.

The Hanoi market moved higher on Thursday but turnover remained low at VND421 billion. The HNX-Index inched up a mere 0.06 point, or 0.05%, from the previous session to close at 120.45.

There were 172 stocks rising versus 85 others falling, including seven stocks hitting the ceiling prices and seven others dropping to the floor prices. Foreigners were net buyers to the tune of around VND6 billion worth of shares.

HCMC Securities Corp. (HSC) it its comment said the only difference with Wednesday’s action was that buyers and sellers were much more in balance.

“Holders became relatively insensitive to further small losses, while buyers only placed small orders just in case. With an absence of economic, monetary and corporate news, there was no wonder that investors moved to the sidelines, waiting for something to happen somewhere,” the stock broker said.

Everyone was waiting for the other investors to pull the trigger and very few investors were actually doing anything, it said.

“On Friday again we saw the resilience of a number of stocks that don’t really go down anymore on days where the index loses ground, while they do move upwards if there’s an absence of bad news. Besides, these stocks can be found among the large caps as well as the smaller segment of the market. Solid companies with good fundamentals are certainly out there and don’t even come at a premium these days,” HSC said.

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Market participants still lukewarm despite rally

HCMC – The local market bounced back on Wednesday given supporting news of interbank and lending rate cuts, with the VN-Index gaining 3.38 points, or 0.74%, from the previous session to close at 457.7. However, participation was still lukewarm, with the trade volume dropping and value merely inching up.

The market opened on a slightly weaker note and dropped 1.09 points to 453.23 after the first matching phase.  It recovered slightly from the second matching phase and then moved higher to close at the highest level of the day.

Liquidity stayed low with 25 million shares worth VND698 billion traded, dropping by 17% in volume but increasing by 12% in value against the previous session respectively. On the southern bourse, bids rose 5.7% to 56.7 million shares while offers plunged 20% from the day earlier to 46.4 million shares.

Up to 135 stocks closed the day higher while 71 stocks lost ground, of which 11 issues hit their ceiling prices and three others closed at the floor prices.

Ocean Group Co. (OGC) remained the most active traded stock, advancing 2% to VND30,100 per share on the volume of 1.2 million shares, followed by Agribank Securities Co. (AGR) that jumped to its ceiling price of VND12,800 with around 950,000 shares traded.

Foreign trading improved as the investors bought 4.3 million shares worth VND162 billion and offloaded 2.5 million shares worth VND63 billion, making up 25% and 10% of the market’s buying and selling value respectively.

HCMC Securities Corp. in its comment said on Wednesday’s gain was important in technical terms as the market broke through all major moving averages. “But with volumes at these levels we should not put too much fate in technical moves like these. Investor interest remains very low and it seems that risk tolerance is extremely low at this moment,” said the stock broker.

“Although on Thursday’s move could gather some momentum over the coming days and put price a bit higher, we believe that there are other factors such as the large supply overhang that continue to keep a lid on equity prices. Therefore, any rally is likely to be short-lived for the moment and probably for the coming weeks. With valuations and dividend yields at very reasonable levels, especially if we compare them to a number of other markets in the region, we continue to recommend investors to accumulate positions on any correction,” the broker added.

The Hanoi market also recovered on Wednesday but turnover kept moving down to just VND370 billion. The HNX-Index inched up 0.58 point, or 0.48%, from the previous day to 120.39.

Out of the 344 listed stocks, 134 closed the day higher and 121 stocks closed down, of which four stocks hit the ceiling prices and seven others closed at their floor prices. Foreigners were net buyers to the tune of VND4.6 billion worth of shares.

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Market predicted to ebb this week

HCMC – Stock brokers hold a downbeat view over the local stock market this week, saying the market would suffer a mild decline as profit-taking pressure might increase at around the 460-point level. The VN-Index is expected to move within a narrow range between 445 and 465 points.

The market corrected in the last session of last week after three rising days in a row. Throughout the week, however, the VN-Index gained 7.55 points, or 1.67%, against the previous week to end at 459.26.

Closing the week, the number of advancers was still modest with 53 stocks rising compared to 189 others losing ground. Liquidity remained low, averaging out at 37.9 million shares worth VND975 billion per session, rising by 1.9% in volume but dropping by 3.4% in value.

APEC Securities Co. noted that large caps rallied sharply during the week due to high demands of foreign investors while penny stocks kept moving down.

“Although the U.S. market enjoyed another rising week, the local market stayed dull as investors were waiting for financial reports of listed firms in the third quarter. They were also pessimistic at declines of most small and medium caps last week,” APEC said.

APEC estimated that the market would not escape the narrow range between 445 and 465 points this week. “Investors should acquire stocks with good fundamentals if the VN-Index drops to below 450 points,” it suggested.

Vietnam International Securities Co. (VIS) said complicated developments on the world market were not strong enough to support investor sentiment last week. “Buyers only accepted low prices given lack of supporting news and cash flow signs. It is notable that trading volume is rather low recently, suggesting that supplies of cheap shares are running dry,” VIS said. 

Foreign participation, meanwhile, surged strongly against previous weeks and the investors were net buyers for around 17.8 million shares worth VND703 billion.

“Foreigners now play an important role in movement of the VN-Index and will help prevent a sharp downturn within the next few days,” VIS said.

HCMC Securities Corp. (HSC) said the VN-Index, nevertheless, gained some eight points last week and sentiment seems to have improved somewhat, helped by the very active buying by some foreigner investors. “The general feeling is that once support from this side subsides, prices might fall back again and therefore we see short-term players taking profit at levels above 460 points,”

“We do not expect sentiment to change dramatically over the coming week. A number of large caps will continue to do well, while the overall picture is likely to show little excitement,” HSC added.

The Hanoi market performed worse than its southern counterpart with three losing sessions. The HNX-Index lost 4.12 points, or 3.27%, from the week earlier to close at 121.69. The market’s liquidity improved slightly with the average daily volume of 30.2 million shares worth VND692 billion, increasing by 6.3% and 4.8% against the previous week respectively. VIS predicted the market would move flat again this week. LienVietBank,

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Market rises for third straight day

HCMC – The local market gained ground for the third consecutive session on Thursday as blue-chips continued moving up. The VN-Index rose 1.33 points, or 0.29%, from a day earlier to end at 462.05.

On the Hochiminh Stock Exchange, demand dropped 13.6% from the previous session to 62 million shares while supply surged 30.8% to nearly 84 million shares. Liquidity fell slightly with 37.3 million shares worth VND983 billion changing hands, decreasing by 2.5% and 6.4% respectively.

The market opened higher and gained a slight 1.27 points to 461.99 after the first matching phase and then rose further before jumping four points at the middle of the continuous matching phase, only to drop back steadily towards the end of the session.

The number of advancers was almost equal to that of gainers, at 159 to 162, of which nine stocks went to the ceiling prices and seven issues plunged to the floor prices.

PetroVietnam Fertilizer and Chemicals Corp. (DPM) became the most actively traded stock, gaining 4.7% to VND32,900 per share with 1.9 million shares changing hands. Eximbank (EIB) followed, falling 0.5% to VND17,800 with nearly 1.8 million shares traded.

Foreigners were strong net buyers again, acquiring 11.4 million shares worth VND473 billion and offloading 4.7 million shares worth VND172 billion, making up 48% and 17.5% of the market’s buying and selling value respectively.

The Hanoi market, meanwhile, declined strongly and turnover also tumbled to around VND540 billion. The HNX-Index shed 2.22 points, or 1.78%, from the previous session and ended the day at 122.62.

The market saw 122 stocks rising and 160 others falling, including seven stocks shooting up to the ceiling and five stocks dropping to the floor. Foreigners were net buyers, contributing 0.6% and 0.4% of the market’s buying and selling value respectively.

Vietnam International Securities Co. (VIS) in its daily report said the market still maintained the uptrend on Thursday given strong rallies of stock indices globally. Liquidity stayed low as most investors were cautious while some offloaded shares to take profits. The bustling gold market, meanwhile, seemed to be more attractive to local investors.

“The market is still in the cumulative stage and investors are waiting for the third quarter’s financial reports of listed firms. The VN-Index will move in a narrow margin in the last trading day of the week,” VIS said.

APEC Securities Co., meanwhile, said the slowing uptrend on Thursday was not surprising to investors as the VN-Index retreated more than twice when the market neared the range between 465 and 470 points since August. Low liquidity was a positive sign, showing the market had yet to reach the peak of the rising streak.

“We advise that investors stay outside the market on Saturday. The market will correct if the VN-Index broke the 470-point level but stock prices then will be higher than the recent correction stage,” APEC added.

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Market rallies to over 460 points

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.

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Market suddenly bounces back

HCMC – The local market suddenly rallied to over the 450-point level on Tuesday after two successive falling sessions. The VN-Index gained 5.13 points, or 1.15%, from the previous day to close at 450.96.

Liquidity, however, fell back sharply with 33.2 million shares worth VND839 billion traded, plunging by 33.7% and 31% against a day earlier respectively. Investors on the southern bourse bid for nearly 72 million shares, rising by 7.5% from the previous session, while they offered 54.3 million shares, a 34.4% decrease.

The market opened lower and hit a low of 440.63 in the second matching phase before a rebound. It enjoyed a late surge which included a four point jump at the close to end the day at the highs.

The market saw 131 stocks rising and 72 others closing down, of which 11 stocks went to the ceiling prices and seven others plunged to the floor prices.

Ocean Group Co. (OGC) once again was the most actively traded stock, rising 2.3% to VND30,800 per share with 1.6 million shares traded. Sacombank (STB) still stood at the second position, closing flat at VND16,800 on the volume of 1.4 million shares.

Foreigners remained strong net buyers as they bought 5.8 million shares worth VND220 billion and offloaded 1.9 million shares worth VND78.8 billion. They accounted for 26.2% and 9.3% of the market’s buying and selling value respectively.

The Hanoi market also recovered after a four-session losing streak while turnover fell to VND720 billion. The HNX-Index rose 1.1 points, or 0.91%, from the previous session to 122.02.

There were 171 stocks advancing and 96 others losing, of which 32 stocks closed the day at the ceiling prices and nine stocks dropped to the floor prices. Foreigners were net buyers again to the tune of VND7 billion worth of shares.

Fiachra Mac Cana, managing director of HCMC Securities Corp., said both markets rebounded in late trading after a weak start but volumes were lower. The late bounce was at least partly down to technical trading in the southern bourse and therefore perhaps less than convincing.

“Even so we are happy to see some buying support above the critical 118-point level on the HNX-Index. Market breadth widened somewhat, while foreigners were very active buyers again on Wednesday,” he said.

“While we think the late rebound was encouraging with volumes fairly low and market bids and offer levels trailing below recent averages it lacks conviction. Therefore, the market is still likely to test lower short term in our opinion. We keep our investment stance that medium to long-term players can continue to buy in gradually,” Mac Cana added.

Vietnam International Securities Co. (VIS) said the market would check the 450-point level for several times before a clearer tendency got visible. “The market may not see a strong decline as stock prices had suffered enough impacts of bad news. The market will see another rising session on Thursday,” VIS said.

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Market to stay flat again this week, brokers

Local stock investors follow prices on the electronic quotation board of a securities firm in HCMC. Securities companies have forecast the market will remain flat with the key index moving between 443 and 460 points this week - Photo: Le Toan

HCMC – Since investors are still worried about huge share supplies in the future while cash flow remains weak, many securities enterprises forecast the market to remain flat with the VN-Index oscillating within 443 and 460 points this week.

The market closed the first week of October with a modest change of the stock index but a strong decline in trading volume. On the southern bourse, the VN-Index gained a slight two points, or 0.44%, against the previous week to close at 451.71.

Liquidity, meanwhile, tumbled as there was an average 37.1 million shares worth VND1 trillion traded daily, dropping by 20.4% and 21.3% against the previous week respectively. With three rising and two falling sessions, the market saw 64 stocks advancing, 174 stocks closing down while 25 others moved sideways at the end of the week.

Last week brought positive information of the macro economy, including strong growth rates of total retail and service revenue and gross domestic product (GDP) in the third quarter and the first nine months of this year. However, local investors were very cautious and decided to stand back to gauge the huge supplies in the last quarter of 2010, according to Vietnam International Securities Co. (VIS).

Foreigners, after a strong purchase on Thursday to beautify the third quarter financial reports, suddenly decreased trading the next day. The investors were still net buyers for around 7.1 million shares worth VND314 billion during the week.

“Foreigners are net buyers for a tune of over VND9.5 trillion this year, suggesting that they have bought a large number of stocks given narrow trading on the local market. They are expecting at a long-term index rally when both domestic and international economies actually recover,” VIS said.

Fiachra Mac Cana, managing director of HCMC Securities Corp., said the third quarter earnings season is of course about to begin and with strong credit growth seen this quarter, investors expect on the whole results will be positive. “We note that credit growth is a good leading indicator of corporate activity and even profitability and we suspect most earnings surprises will be positive,” he said.

“However, it must be said that equity markets are slipping into inactivity once again characterized by tight trading ranges and low volumes. It was not surprising really with gold markets popping and attracting retail interest while the bond market sprang into life last week and drew attention from banks. We had thought we might see a short term bounce this week but clearly it has not happened. The short-term risk is slightly to the downside. We keep our view that medium to long term investors can continue to pick up stock at these levels,” Mac Cana added.

The Hanoi market also witnessed three rising and two falling sessions last week, with the HNX-Index losing 3.82 points, or 2.95%, against the previous week to close at 125.81. The market’s liquidity was sharply low with the average daily volume of 28.4 million shares worth VND660 billion, falling by 22% and 26% from the week earlier respectively. VIS said the market would see seesaw trading this week.

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Market slightly rebounds

HCMC – The local market bounced back slightly on Thursday given strong demand for large caps at the end of the session. The VN-Index rose 1.58 points, or 0.35%, against the previous day to close at 454.52.

The market opened slightly in the red and traded for much of the day in a very narrow three-point range around Wednesday’s close before jumping 1.5 points at the close.

Liquidity also increased strongly as 40.6 million shares worth VND1.2 trillion were traded, surging by 22.4% and 34.8% against the session earlier respectively. On the Hochiminh Stock Exchange, bids rose 11.7% to 63.5 million shares while offers dropped 12.4% from the previous day to nearly 62.8 million shares.

The number of losers was more than twice that of advancers at 145 to 68, of which six issues went to the ceiling prices and nine others plunged to the floor prices.

Ocean Group Co. (OGC) once again led the market in terms of liquidity, ending the day down 1.9% to VND31,600 per share with 1.8 million shares traded, followed by Thuan Thao Corp. (GTT), gaining 4.5% from the previous session to VND11,500 on the volume of 855,000 shares.

Vimedimex Medi-Pharma Co. (VMD) began trading 8.1 million shares on the bourse on Thursday but it dropped 20% against the preference price to VND32,000 per share on the volume of around 164,000 shares.

Foreigners turned strong net buyers, acquiring 5.4 million shares worth VND190 billion and offloading 1.8 million shares worth VND54 billion. They accounted for 18.4% and 5.2% of the market’s buying and selling value respectively.

The Hanoi market fell for the third consecutive session on Thursday and turnover dipped to VND630 billion. The HNX-Index dropped 0.12 point, or 0.09%, from the previous session and ended the day at 127.29.

Only 74 stocks rose while 221 stocks lost ground, of which six stocks went to the ceiling prices while 10 stocks dropped to the floor prices. Foreigners were slight net buyers and accounted for 0.66% of the buying value and 0.6% of the selling value.

Fiachra Mac Cana, managing director of HCMC Securities Corp., said the markets closed mixed with the HNX-Index continuing to decline while the southern bourse moved higher. Trading volumes were unchanged overall as a dip in the northern bourse was offset by higher volumes in the southern market.

Sentiment, however, remained fragile as a weakening currency in the unofficial market coupled with higher gold prices dogged investors, he commented.

Vietnam International Securities Co. (VIS) said the 450-point level seemed to be especially firm for the VN-Index in the coming time when supply would far outpace demand on the market.

“The index traded narrowly around the level in recent sessions despite supporting news from the macro economy, which showed that investors were still very cautious. The market may move flat around the 455-point level within the next few days,” VIS predicted.

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Brokers predict seesaw trading this week

HCMC – Securities brokers predicted the market would see saw in narrow range again this week with a VN-Index hovering between 445 to 460 points as investors would continue waiting for clearer information relating to Decree 13.

The market ended the previous week with three falling and two rising sessions while liquidity sharply tumbled on Wednesday and Friday. The VN-Index lost 7.87 points, or 1.72%, against the previous week to close at 449.71.

Although the global markets continued to stage positive developments, the local market was still impacted by bad information from the macro economy. Vietnam’s consumer price index (CPI) in September late last week was estimated to increase by 1.31% from August, taking the index to 6.46% in the first nine months of the year while gold and U.S. dollar deposit rates increased.

“The information will keep investors away from the playground this week. Meanwhile, they are worried that supply may far exceed demand as many enterprises will list on the bourse in the future while the cash flow has yet to improve,” said APEC Securities Co.

However, trading volume on the market improved strongly, averaging out at 46.7 million shares worth nearly VND1.2 trillion daily, increasing by 11% and 21.6% against the week earlier respectively. Closing the week, only 49 stocks gained grounds while up to 189 stocks ended with losses.

Foreign participation once again decreased but the investors remained net buyers for around 18.2 million shares worth VND759 billion during the week.

“They were still important support for the index and, for the long-term vision, seem to acquire more blue-chips on the market,” APEC said.

HCMC Securities Corp. (HSC) said the September index that came out in strong increase of 1.31% proved all commentators who had anticipated a much lower figure over the past weeks completely wrong. “Therefore, the effect on investor sentiment can only be felt on Monday and we could certainly get a backlash from the higher than expected figure. The final version of Decree 13 is indeed said to contain very little to excite the banking sector, so we should not expect too much of that either,” HSC said.

“Nevertheless, it looks like we could be coming to the end of what has been an extended period of bad news and fear for even more bad news. That means that most of the negative pressure has already been incorporated into last Friday’s share prices. We normally should expect some pressure in the short term, but with the low valuations that we are seeing in the market, it seems that downside risk has become rather limited,” the broker added.

The Hanoi market saw up to four falling sessions last week after gaining a modest ground on the first trading day. The HNX-Index dropped 3.22 points, or 2.42%, from the week earlier to 129.63. The market’s liquidity was higher with the average daily volume of 36.5 million shares worth VND894 billion, increasing by 4% and 3.7% against the week earlier respectively.

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Brokers predict seesaw trading this week

HCMC – Securities brokers predicted the market would see saw in narrow range again this week with a VN-Index hovering between 445 to 460 points as investors would continue waiting for clearer information relating to Decree 13.

The market ended the previous week with three falling and two rising sessions while liquidity sharply tumbled on Wednesday and Friday. The VN-Index lost 7.87 points, or 1.72%, against the previous week to close at 449.71.

Although the global markets continued to stage positive developments, the local market was still impacted by bad information from the macro economy. Vietnam’s consumer price index (CPI) in September late last week was estimated to increase by 1.31% from August, taking the index to 6.46% in the first nine months of the year while gold and U.S. dollar deposit rates increased.

“The information will keep investors away from the playground this week. Meanwhile, they are worried that supply may far exceed demand as many enterprises will list on the bourse in the future while the cash flow has yet to improve,” said APEC Securities Co.

However, trading volume on the market improved strongly, averaging out at 46.7 million shares worth nearly VND1.2 trillion daily, increasing by 11% and 21.6% against the week earlier respectively. Closing the week, only 49 stocks gained grounds while up to 189 stocks ended with losses.

Foreign participation once again decreased but the investors remained net buyers for around 18.2 million shares worth VND759 billion during the week.

“They were still important support for the index and, for the long-term vision, seem to acquire more blue-chips on the market,” APEC said.

HCMC Securities Corp. (HSC) said the September index that came out in strong increase of 1.31% proved all commentators who had anticipated a much lower figure over the past weeks completely wrong. “Therefore, the effect on investor sentiment can only be felt on Monday and we could certainly get a backlash from the higher than expected figure. The final version of Decree 13 is indeed said to contain very little to excite the banking sector, so we should not expect too much of that either,” HSC said.

“Nevertheless, it looks like we could be coming to the end of what has been an extended period of bad news and fear for even more bad news. That means that most of the negative pressure has already been incorporated into last Friday’s share prices. We normally should expect some pressure in the short term, but with the low valuations that we are seeing in the market, it seems that downside risk has become rather limited,” the broker added.

The Hanoi market saw up to four falling sessions last week after gaining a modest ground on the first trading day. The HNX-Index dropped 3.22 points, or 2.42%, from the week earlier to 129.63. The market’s liquidity was higher with the average daily volume of 36.5 million shares worth VND894 billion, increasing by 4% and 3.7% against the week earlier respectively.

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Market retreats on CPI concerns

Investors watch stock prices at Saigon Securities Inc. The VN-Index fell 4.55 points, or 0.99%, from a day earlier and closed at 453.32 - Photo: Le Toan

HCMC – The local market declined after three consecutive rising sessions on Tuesday given September consumer price index (CPI) is up in Hanoi and HCMC.

The VN-Index fell 4.55 points, or 0.99%, from a day earlier and closed at 453.32.

Meanwhile, liquidity on the southern bourse remained high as 57.4 million shares worth VND1.7 trillion were traded, up 3.4% and 15.8% from the previous session respectively.

The market opened lower and fell back steadily to hit a low during the second matching phase before recovering and then in the final phase fell back once again to close at the daily low.

Up to 145 stocks lost ground while 56 others moved higher, of which nine stocks closed the day at their ceiling prices and seven issues dropped to the floor prices. Major sectors were mixed to lower on Tuesday.

Ocean Group Co. (OGC) once again took the lead in terms of liquidity, surging by 4.7% from the previous day to VND37,600 per share with a hefty 14.3 million shares traded. Eximbank (EIB) was the second biggest traded issue but it closed flat at VND17,600 per share with 1.6 million shares changing hands.

Foreigners were net buyers in terms of value as they acquired 5.8 million shares worth VND262 billion and offloaded 7.1 million shares worth VND248 billion. They accounted for 15.3% and 14.5% of the market’s buying and selling value respectively.

The Hanoi market fell on Tuesday amid lower turnover of VND1 trillion. The HNX-Index fell by 1.74 points, or 1.31%, against the session earlier and ended the day at 131.57.

The market saw 58 stocks rising and 242 others falling, including eight stocks hitting the ceiling prices and eight others dropping to the floor prices. Foreigners were net sellers again and accounted for 0.68% of the buying value and 0.84% of the selling value.

Fiachra Mac Cana, managing director of HCMC Securities Corp., said despite the fall on both markets on Tuesday, the damage was fairly limited while turnover remained good.

Fallout from the September CPI releases in HCMC and Hanoi was fairly muted but at the same time, buyers were quite cautious about pushing up prices. Foreign participation remained high although in fact selling pressure increased markedly, he said.

“The market was quite interesting on Wednesday with a steady decline across the board in most issues… The market seemed a little confused at the moment with some sharp upward and downward price movements at the close on Wednesday amid soaring bid levels. But, behind all this we still feel that prices continue to be fairly well supported at current levels and investors meanwhile await near term developments,” he said.

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Liquidity hits one-month low

HCMC – Trade on the southern stock market tumbled to a one-month low on Thursday although stock prices did improve slightly. The VN-Index inched up a mere 0.8 point, or 0.18%, against the previous session and ended the day at 449.52, but liquidity fell below VND1 trillion.

The market opened lower but made a quick recovery to hit a daily high of 450.85. It fell into the red once more after the second phase and then recovered a second time to close just into the black.

Investors bid for 70.5 million shares on the Hochiminh Stock Exchange, up 2.9% against the previous session, while the amount on offer shrank 15.4% to 56.6 million shares. Closing the day, the market’s total trading volume was 38 million shares worth VND989 billion, dropping by 1.5% and 3.3% from the day earlier respectively.

There were 112 stocks advancing on Thursday versus 90 others closing in the red, of which eight stocks went to the ceiling prices and four issues plunged to the floor prices.

Ocean Group Co. (OGC) remained the most actively traded stock, ending the day up 2.9% to VND35,000 with 3.2 million shares traded, followed by Eximbank (EIB), closing at the reference price of VND17,300 on the volume of over 950,000 shares.

Foreigner participation was much stronger, with 5.2 million shares worth VND192 billion acquired and 3.1 million shares worth VND123 billion offloaded. They accounted for 20.7% and 13.2% of the market’s buying and selling value respectively.

The Hanoi market recovered some ground on Thursday but turnover remained low at VND635 billion. The HNX-Index added 1.19 points, or 0.94%, from the previous session and ended the day at 128.4.

Some 124 stocks rose while 136 stocks declined, of which five stocks went to the ceiling prices while 13 stocks dropped to the floor prices. Foreigners were slight net sellers, accounting for 2.8% of the buying value and 2.9% of the selling value.

Fiachra Mac Cana, managing director of HCMC Securities Corp., said the markets endured another day of fairly lifeless trading with little movement and yet lower volumes.

The market did end the day slightly higher nut the level of interest continued to wane. Market breadth was higher though and foreign participation levels remain very high, he said.

“The central bank seems set to announce any amendments to Decree 13 sometime next week and given the short time between then and the October 1st deadline this would tend to support the consensus view that any changes at this late stage will be fairly minor. The markets will likely continue trade in the current narrow trading range before then. Medium to long-term investors can comfortably continue to buy,” Mac Cana added.

Au Viet Securities Co. said mind rallies of many stocks on Thursday were a positive sign for another rising session on Friday. “Buying power will be stronger when the VN-Index nears 455 points. We think that the correction phase is about to end and the market will improve on Saturday or next week,” the broker said.

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Markets wrestle with bears

The VN-Index closed essentially flat Sept. 15 at 448.72 points, saved
from a decline by a steady performance by major shares late in the
session on the HCM Stock Exchange.

Advancing blue
chips included Bao Viet Holdings (BVH), up 1.9 percent, and Ocean Group
(OGC) – Sept. 15's most-active share, with 2.7 million traded – up 1.3
percent

The volume of trades rose 3.7 percent over
Sept. 14's session, to 38.4 million shares, worth just over 1 trillion
VND (52 million USD).

Foreign investors returned to
being net buyers on both of the nation's stock exchanges, picking up a
net of 3.8 million shares worth 134.3 billion VND (6.9 million USD).

On the Hanoi Stock Exchange Sept. 15, the HNX-Index plunged by nearly
2.1 percent to close at 127.21 points, whiping out Sept. 14's 's gains.

About 222 codes declined, while only 59 listed stocks rallying and 30 shares closing unchanged.

Volume remained meagre, with 27.8 million shares changing hands,
generating a turnover of just 665.8 billion VND (34.1 million USD)./.

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Market drops below 450 points

Investors watch stock prices at Vincom Securities Co. The VN-Index fell 4.12 points, or 0.91%, from the previous session to close at 447.27 on Monday - Photo: Le Toan

HCMC – The local market opened the week down on Monday following a sharp decline late last week, with the VN-Index losing 4.12 more points, or 0.91%, from the previous session to close at 447.27.

Liquidity on the southern bourse also declined with 46.3 million shares worth VND1.1 trillion traded, decreasing by 12.6% and 16% against the previous day respectively. Investors bid for 79 million shares, almost on a par with the amount on offer at 79.6 million shares, the latter contracting by a quarter.

The market opened briefly higher before starting to slide and fell back to hit the daily low of 442.43 by the middle of the continuous matching phase. It then rebounded somewhat but still closed in the red.

The market saw 43 stocks advancing while 169 others losing grounds, of which six stocks closed at the ceiling prices and 48 others plunged to the floor prices.

Viet-Han Corp. (VHG) became the most actively traded stock but it dropped to the floor price of VND20,900 per share on the volume of 1.5 million shares, followed by Investment and Trading of Real Estate Co. (ITC), which also lost 4% against the previous day to VND23,900 with 1.4 million shares changing hands.

Foreigners were still strong net buyers, acquiring 3.5 million shares worth VND120 billion and offloading 1.4 million shares worth VND49 billion. They accounted for 10.7% and 4.4% of the market’s buying and selling value respectively.

Meanwhile, the Hanoi market tumbled again on Monday in much lower turnover of VND890 billion. The HNX-Index lost 2.93 points, or 2.23%, against the previous day and ended the day at 128.22.

Only 47 stocks increased while 253 stocks declined, including three stocks hitting the ceiling prices and 32 stocks dropping to the floor. Foreigners shifted to the buying side as well, accounting for 0.6% of the buying value and 0.32% of the selling value.

HCMC Securities Corp. in its comment on Monday said Decree 13 continued to dominate sentiment and investors were spooked on Monday by the rumor that the new regulations will be implemented without any delay and without adjustments.

“While the HNX-Index closed almost at its lowest level of the day, the VN-Index managed to stage a five-point rebound from its intraday low to the close, so there are still investors out there who are willing to take a longer term view and scoop up positions if prices fall too quickly. However, the situation remains fragile and sentiment can remain volatile in the immediate future,” it said.

“The rebound off the 442-point level on Tuesday could lead to slightly better sentiment in the very short term. But as long as the new banking regulations cause the volatility that we have seen over the past weeks, it will be hard to give any sort of indication for the direction of the index over the coming week,” the broker added.

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Market drops below 450 points

Investors watch stock prices at Vincom Securities Co. The VN-Index fell 4.12 points, or 0.91%, from the previous session to close at 447.27 on Monday - Photo: Le Toan

HCMC – The local market opened the week down on Monday following a sharp decline late last week, with the VN-Index losing 4.12 more points, or 0.91%, from the previous session to close at 447.27.

Liquidity on the southern bourse also declined with 46.3 million shares worth VND1.1 trillion traded, decreasing by 12.6% and 16% against the previous day respectively. Investors bid for 79 million shares, almost on a par with the amount on offer at 79.6 million shares, the latter contracting by a quarter.

The market opened briefly higher before starting to slide and fell back to hit the daily low of 442.43 by the middle of the continuous matching phase. It then rebounded somewhat but still closed in the red.

The market saw 43 stocks advancing while 169 others losing grounds, of which six stocks closed at the ceiling prices and 48 others plunged to the floor prices.

Viet-Han Corp. (VHG) became the most actively traded stock but it dropped to the floor price of VND20,900 per share on the volume of 1.5 million shares, followed by Investment and Trading of Real Estate Co. (ITC), which also lost 4% against the previous day to VND23,900 with 1.4 million shares changing hands.

Foreigners were still strong net buyers, acquiring 3.5 million shares worth VND120 billion and offloading 1.4 million shares worth VND49 billion. They accounted for 10.7% and 4.4% of the market’s buying and selling value respectively.

Meanwhile, the Hanoi market tumbled again on Monday in much lower turnover of VND890 billion. The HNX-Index lost 2.93 points, or 2.23%, against the previous day and ended the day at 128.22.

Only 47 stocks increased while 253 stocks declined, including three stocks hitting the ceiling prices and 32 stocks dropping to the floor. Foreigners shifted to the buying side as well, accounting for 0.6% of the buying value and 0.32% of the selling value.

HCMC Securities Corp. in its comment on Monday said Decree 13 continued to dominate sentiment and investors were spooked on Monday by the rumor that the new regulations will be implemented without any delay and without adjustments.

“While the HNX-Index closed almost at its lowest level of the day, the VN-Index managed to stage a five-point rebound from its intraday low to the close, so there are still investors out there who are willing to take a longer term view and scoop up positions if prices fall too quickly. However, the situation remains fragile and sentiment can remain volatile in the immediate future,” it said.

“The rebound off the 442-point level on Tuesday could lead to slightly better sentiment in the very short term. But as long as the new banking regulations cause the volatility that we have seen over the past weeks, it will be hard to give any sort of indication for the direction of the index over the coming week,” the broker added.

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Market rebounds, trade tumbles

HCMC – Strong demand lifted the local market above the 460-point level on Thursday after two consecutive losing sessions. The VN-Index gained 5.24 points, or 1.14%, from the previous day to 463.68.

Liquidity, however, declined sharply with nearly 48 million shares worth VND1.2 trillion traded, falling by 14.5% and 16.8% against the previous session respectively. Bids decreased a slight 1.2% from a day earlier to 93 million shares while offers declined 10.7% to 81 million shares.

The market opened higher and after hitting a daily high of 465.69, it fell back during the second matching phase before finally recovering to close just below the highs.

The number of gainers far outnumbered that of losers at 184 to 33, including 34 stocks shooting up to the ceiling prices and two others dropping to the floor prices.

Vietnam Ocean Shipping Co. (VOS) was the most actively traded stock in terms of liquidity, closing up 4.8% to VND15,100 per share with 2.7 million shares traded. Saigon Securities Inc. (SSI) ranked second, advancing 1.75% from the previous day to VND29,000 on the volume of 1.6 million shares.

Foreigners remained on the buying side on Thursday as they bought 3.1 million shares worth VND123 billion and offloaded 1.3 million shares worth VND106 billion. They accounted for 10% and 4.6% of the market’s buying and selling value respectively.

The Hanoi market also recovered its lost ground but in lower turnover of nearly VND1.2 trillion. The HNX-Index added 3.65 points, or 2.75%, against the session earlier and ended the day at 136.24.

There were 248 stocks rising while 55 stocks falling, of which 21 stocks went to the ceiling prices while four stocks dropped to the floor prices. Foreigners were net sellers and accounted for 0.4% of the buying value and 0.5% of the selling value.

Fiachra Mac Cana, managing director of HCMC Securities Corp., said the markets recovered some lost ground on Thursday as expectations rose once again for a favorable outcome to the ongoing discussions on a revised timeline for banking regulatory reform. Volumes, however, fell and strength in early trading did fade somewhat during the day although the VN-Index managed to close on a reasonably firm note.

“The market is still unsure of when any announcement of Decree 13 might come but we suspect it will take a little more time as key data is apparently still being gathered from banks and only after that is completed can an assessment of the current situation begin,” he said.

Mac Cana added that “stocks are likely to trade in a fairly narrow range in the meantime. So, short-term daily market movement may be dominated by rumors and speculation in the absence of hard news.”

Vietnam International Securities Co. said the market had rallied again following the global trend. Excluding from temporary psychological factors, the market movement will much rely on macro economic information and business results of listed firms in the third quarter of this year.

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Market rallies for sixth straight session

Investors watch stock prices at Kim Eng Securities Co. The VN-Index gained 7.25 points, or 1.58%, from the previous session to close at 466 on Monday- Photo: Le Toan

HCMC – The local market on Monday continued to climb sharply, having seen five rising sessions in a row before the long National Day holiday, as the VN-Index jumped 7.25 points, or 1.58%, from the previous session to close at 466.

Investors on the southern bourse increased their bids by 18.4% against the day earlier to around 111 million shares, while the amount on offer contracted by 6.12% to 71 million shares. Liquidity, however, improved strongly with 57.2 million shares worth VND1.6 trillion changing hands, both increasing by around 30% from the previous session.

The market started the day well into positive territory and hit a daily high of 469.25 towards the end of the second matching phase. It fell back somewhat during the last matching phase and finally closed below the high.

The number of gainers was nearly 10 times that of losers at 215 to 23, of which 112 stocks closed the day at the ceiling prices and three others plunged to the floor prices.

The most traded stock in terms of liquidity was Saigon Securities Inc. (SSI) that ended the day up 4.9% to VND29,900 with 3.17 million shares traded. Refrigeration Electrical Engineering Corp. (REE) was the second biggest traded issue, advancing 4% from the previous day to VND17,400 on the volume of 2.4 million shares.

Foreign participation turned strong again as the investors acquired 5.7 million shares worth VND195 billion and sold 3.5 million shares worth VND125 billion, accounting for 12.8% and 8.2% of the market’s buying and selling value respectively.

The Hanoi market rose further on Monday as well, but in lower turnover of VND880 billion. The HNX-Index added 5.14 points, or 3.9%, against the day earlier and closed at 136.8.

Up to 293 stocks advanced while 23 stocks declined, of which 115 stocks went to the ceiling prices while one stock dropped to the floor price.

Fiachra Mac Cana, managing director of HCMC Securities Corp., said the markets started this week well even after the long holiday and investor sentiment remained quite positive while good volumes had returned.

On Monday’s move was partly the result of decent performances on overseas markets over the last few days and partly some keen anticipation of good news on the domestic front over the next few days. However, stocks did drop off somewhat in the last phase on the southern bourse although sentiment on the Hanoi market stayed true until the end, he said.

“Our feeling is that any news should be good enough to take us some way higher than here over the next few weeks but then we note that both the 480 points and above that the 500-point levels on the VN-Index are formidable barriers. And then after this month is over, revisions or no revisions of the Decree 13 we still have a lot of potential supply still coming our way,” Mac Cana added.

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Brokers: Market to maintain uptrend this week

Investors follow stock prices at Rong Viet Securities Co. in HCMC. Stock brokerages expect the market rally to extend this week after strong rises last week - Photo: Le Toan

HCMC – Local securities enterprises expect that the market would continue its uptrend this week after strong VN-Index rallies and high trading volumes last week.

APEC Securities Co. in its weekly comment said investors might be more excited after the National Day holiday with three rising sessions last week and the VN-Index gaining 29.61 points, or 6.9%, from the previous session to close at 458.75. Liquidity strongly improved with the average daily trading volume of 45.7 million shares worth VND1.2 trillion, increasing by 15.8% and 20% against the week earlier respectively.

“The VN-Index will have the supporting level of 430 points and resistance level of 475 points this week. We continue to advise investors to boost investment in steel, sugarcane, food and property stocks with good basic factors this week, especially in correction phases,” APEC said.

Vietnam International Securities Co. (VIS), meanwhile, noted active participation of foreigners during the week. They were net buyers to the tune of around four million shares worth VND222 billion.

Foreigners played an important role in the VN-Index rally last week as they boosted buying many large caps, making local investors feel more confident and demand outpace supply on the market. As a result, the gainers far outpaced the losers at 234 to 16 at the end of the week, the broker commented.

“As we have mentioned in earlier reports, the market needs a new cash flow to sustain a strong rally. Though exact information of a new strong cash flow from foreigners is not clear during the past time, we think that foreigners have brought about a cash flow into the local market, but it is not strong enough to maintain a long-term uptrend,” VIS said.

However, VIS believed that the cash flow would keep investors optimistic and improve liquidity on the market. “With the cash flow, the market may continue recovering its lost ground, while investors may use more financial leverage products and trading volume will be higher this week,” VIS added.

HCMC Securities Co. (HSC) after the last session of the week said the technical driven rally could only go so far and many stocks have already recovered 15% or more from the bottom. “Therefore, we can say that valuations have now gone from cheap to reasonable again and to drive us higher requires a change in the external environment,” it said.

“We are of course still waiting for positive developments concerning adjustments to Decree 13. And now that we have recovered over 40 points on the VN-Index, investors will start looking for some fundamental reasons to drive stock prices higher next week, either better macro news flow or a material change in supply-demand situation. The macro environment is unlikely to be the source of positive news, therefore our best hope lies with an improvement in the supply-demand on the market,” HSC said.

The Hanoi market also enjoyed strong rallies with the HNX-Index adding 13.38 points, or 11.31%, from the previous week to close at 131.66. The daily trading volume averaged at 37 million shares worth VND835 billion. The market is expected to continue improving this week.

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