Stocks rebound on bargain hunting
Stocks rebound on bargain hunting
Shares rebounded on both local markets on Tuesday, driven by investors picking up stocks that had fallen to attractive price levels.
The benchmark VN Index on the HCM Stock Exchange gained 0.37 per cent to close at 769.36 points. It had declined by a total 2 per cent in the previous two sessions.
The HNX Index on the Ha Noi Stock Exchange inched up 0.05 per cent to end at 100.42 points, reversing a two-day decline of 2.2 per cent.
More than 288.3 million shares were traded on both local bourses, worth VND4.95 trillion (US$220.2 million), down from Monday’s trading figures.
Market trading conditions were more positive than the previous two sessions with gaining stocks slightly outnumbering decliners by 233 to 213.
Foreign investors remained net buyers on both local exchanges, purchasing a net value of VND66.2 billion.
On the VN30 Index, which tracks the performance of the 30 largest companies by market capitalisation, 13 stocks advanced.
Those included agriculture firms Hoang Anh Gia Lai (HAG) and HAGL Agrico (HNG), property and retail firm Vingroup (VIC), MBBank (MBB) and dairy producer Vinamilk (VNM).
Property, agriculture and food and beverage sectors were also among industries that recorded the highest growth rates on Tuesday trading after plunging in the previous session.
On the opposite side, brokerage firms continued to suffer from profit-taking pressure, driven by Bao Viet Securities (BVS), Viet Capital Securities (VCI) and BIDV Securities (BSI).
BIDV Securities Co (BSC) wrote in its Tuesday report that the stock market showed signs of recovery after two sessions of sharp decline.
“Money started to be withdrawn from mid- and small-cap stocks and investors switched to focus on blue chips that led the sectors,” BSC said, adding that those large-cap shares had fallen to attractive price levels after correcting in the previous two sessions.
Among the large-cap stocks that bounced back on Tuesday, VIC had fallen a total of 3 per cent on Friday and Monday, MBB had slumped 4.8 per cent and VNM had slipped a total of 3.7 per cent.
Meanwhile, HAG and HNG had dropped respectively 4.5 per cent and 5.4 per cent in the previous four consecutive trading days.
BSC also said that the VN Index would move between 765 and 770 points in coming sessions and could “break the short-term peak of 770 points if market trading liquidity remains positive.”
