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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Indices slip on sluggish trade

Shares closed off slightly for a second day on the HCM Stock Exchange,
with the VN-Index slipping by 0.17 percent on Oct.18 to end the session
at 457.59 points.

Trades continued sluggish, with only 26.4 million shares changing hands, worth just 686.5 billion VND (32.3 million USD).

Vietnam Mechanisation Electrification and Construction (MCG), the
most-active share on the day with 1.6 million traded, was also the day's
top gainer, closing up 4.8 percent as its shareholders commenced a
planned purchase of 3.2 million shares.

Buying by
foreign investors began slowing down, as they just picked only a net of
about 100,000 shares on the HCM City market, worth a net of 11 billion
VND (564,102 USD). They were net buyers on the Hanoi market, but by
a volume of just 354,100 shares, worth only 8.2 billion VND (420,512
USD).

On the Hanoi Stock Exchange, the HNX-Index
also fell for a second day, ending the session down 0.67 percent to
118.89 points.

The value of trades grew by 4.2
percent over Oct. 15 to 371.2 billion VND (19 million USD), on a total
volume of 17.3 million shares. PetroVietnam Construction (PVX) was the
most-active share on the northern bourse, with 1.7 million traded.

Ocean Bank deputy director Nguyen Hong Hai said that stock markets
were coping with shortage of new capital inflows as both major
institutional investors saw not many changes in market situation.

Tightened credit contributed to limit capital inflows, even as the
number of shares listed on the market was expected to continue
increasing through the end of the year, Hai said.

Vietnam International Securities Co analysts predicted that indices
would fluctuate with a narrow band this week, as economic fundamentals
were sound enough to prevent a steep dip in the market./.

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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 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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Pact boosts South Korea-ASEAN trade

HCM CITY — The Korea-ASEAN Free Trade Agreement in 2007 has significantly increased trade between the two sides, a Korean foreign ministry official said.

Speaking at the Korea-ASEAN FTA Forum in HCM City on Thursday, Lee Yun Young, deputy director general for FTA Policy in the Ministry of Foreign Affairs and Trade, said trade expanded by over 23 per cent in 2008, the first year after the treaty came into force.

It was worth US$75 billion last year and is forecast to top the $100 billion mark this year, he said, pointing out it was worth $47.1 billion in the first half, 39.4 per cent up year on year.

ASEAN became Korea's third largest trading partner in 2008 behind only China and the EU, he said.

Na Jong-tae from the FTA Implementation Division's Korea Customs Service said trade with Viet Nam jumped from $7.2 billion in 2008 to $9.5 billion last year.

Almost two-thirds of Viet Nam's top 50 export items to Korea received preferential treatment under the FTA last year, he said.

More than 81 per cent of items exported by Korea and ASEAN members are exempt from tariffs.

"However, only a few businesses in ASEAN countries are using the FTA effectively due to lack of understanding and knowledge," Lee said, noting that the current utilisation rate is below 20 per cent.

If the rate reaches 90 per cent like the Korea-Chile FTA, the effect achieved by the FTA will be enormous, he said.

The two sides proposed measures to improve the rate during talks at the ASEAN Economic Ministers Meeting last month, he said.

They include quickly improving minor procedures, creating an approved exporters system, introducing a system of self-certification of origin, and promoting economic co-operation to develop customs administration in ASEAN countries. — VNS

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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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Market bounces back slightly

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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Liquidity hits six-month low

Stock investors follow price quotations on the electronic board of a securities company in HCMC - Photo: Le Toan

HCMC – Liquidity on the southern bourse hit a six-month low in the third straight falling session on Thursday despite positive information about HCMC’s consumer price index (CPI). The VN-Index lost another 3.26 points, or 0.71%, from the day earlier to 452.23.

Only 31.5 million shares worth VND873 billion were traded at the Hochiminh Stock Exchange, decreasing by 15.8% and 11.9% against the previous session respectively. Bids dropped a slight 2.4% to 56.8 million shares while offers lost a hefty 21.7% to over 52 million shares.

The market opened lower and after a brief rally, it lost ground fairly sharply to hit a low of 450.07 during the second matching phase and then staged a partial recovery before finally trading flat during the final phase of the day.

Losers once again dominated with 139 stocks falling and 57 others managing to gain ground, of which four stocks closed at the ceiling prices and nine stocks dropped to the floor prices. Big names such as OGC, HAG, EIB and MSN made the biggest negative contribution to the VN-Index.

Foreign participation turned low again as the investors acquired 1.7 million shares worth VND70 billion and offloaded around one million shares worth VND34 billion. They accounted for 8% and 3.8% of the market’s buying and selling value respectively.

Eximbank (EIB) became the most actively traded stock, losing 1.8% from the previous day to VND16,300 per share with around two million shares changing hands. Sacombank (STB) came next and closed flat at VND15,800 on the volume of 1.1 million shares.

Vietnam International Securities Co. (VIS) in a note on Thursday said investors were still concerned about the market movement as trading volume dropped to a six-month low. “Recovery on global markets and optimistic CPI forecasts failed to draw buyers as investors were worried about weak cash flow and increasing supplies on the market in the coming time. Besides, the central bank’s dong devaluation decision the day earlier still affected investors as well,” the broker commented.

“We see that cheap supplies on the market have narrowed down and the VN-Index might not fall sharply in the last session of the week. However, we do not expect a rally in Friday’s session as the cash flow has really weakened,” VIS said.

HCMC Securities Corp. (HSC) said the market would continue to trade in a fairly narrow range around current levels for the time being although the short term bias is still to the downside. “However, we do see some support at current levels although any more bad news would push us lower of course. Medium to long-term players can continue to accumulate gradually but short-term players should remain cautious for now,” HSC said.

The Hanoi market continued its downtrend on Thursday in slightly higher turnover of VND664 billion. The HNX-Index was down 0.37 point, or 0.28%, from the previous session and ended the day at 132.25.

The market saw 89 stocks rising and 181 others falling, of which seven stocks went to the ceiling prices while six stocks dropped to the floor prices. Foreigners were net buyers and accounted for 0.6% and 0.3% of the market’s buying and selling value respectively.

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