Shares rebound on bargain-hunting
Shares rebound on bargain-hunting
Vietnamese shares recovered on Tuesday as blue chips performed well on bottom-fishing following sharp falls previously.
The benchmark VN Index on HCM Stock Exchange gained 0.37 per cent to close at 1,080.74 points. The Index had tumbled 3.85 per cent on Monday.
Meanwhile, the minor HNX Index on Ha Noi Stock Exchange increased 0.13 per cent to end at 126.3 points. It had lost 4.86 per cent in the previous session.
More than 240.8 million shares, worth VND10.6 trillion (US$465 million), were traded on the two local exchanges,
The market breadth was negative, with 186 gaining stocks against 254 declining ones while 302 other stocks ended flat.
According to BIDV Securities JSC (BSC), the market continued to witness strong volatility after a bearish session on Monday.
At the beginning of Tuesday’s session, selling pressure remained high due to loss cuts and margin cuts. However, it was reduced due to an increase in buying demand, BSC said.
Large-cap stocks underperformed, pulling the large-cap VN30 Index down 0.13 per cent to 1,053.99 points. Some pillar stocks, such as property developer Vingroup, PetroVietnam Gas Joint Stock Corporation and Bao Viet Holdings rose towards the last minutes, partly calming investors’ sentiment.
In the VN30 Index, 18 stocks lost and 11 stocks gained.
Hoang Thach Lan, head of Personal Banking Division at Viet Dragon Securities Company, said the sharp fall in the market last week was not due to information related to trade war fears or rising tension in the Middle East but due to internal factors, including foreign net sales and a caution philosophy among investors.
Shares tumbled on both the national stock exchanges on Monday after an unexpected rebound last Friday, which did not last as investors were quite cautious and concerned about the possibility of a market bull trap, in which the market shows a false signal of increasing but continues to decline, Lan told tinnhanhchungkhoan.vn.
“I personally think the market next week may increase rather than decrease, thanks to the information of business results of firms in the first quarter, especially of major banks and some market pillar stocks,’” he said.
During this period, many companies start to announce their dividend payment plans, usually after the annual general meetings, which also helps reassure investors.
According to Bao Viet Securities (BVSC), the VN Index quickly dropped 23 points on the Tuesday morning session with the continuation of negative psychology since Monday. Bottom-locking demand of the leading stocks prevented the market from falling further.
“With market movements having decreased 20 per cent since the peak and market trend still undetermined, investors should maintain margin and only disburse a small portion when stock prices are in the attractive areas,” BVSC said in its daily report.
“The rally on Tuesday was not strong enough to confirm the end of the downtrend. After the strong volatility, the market needs time to completely stabilise,” it said.
On the Unlisted Public Company Market, the UPCOM Index lost 0.15 per cent to end at 57,06 points. It had declined by 1.89 per cent to 57,06 points on Monday.
