Cash flows boost stock market
Cash flows boost stock market
Stocks rallied to stay in the green last week amid cash flows pouring into the domestic market and strong selling pressure from short-term investors.
Blue chip stocks led the market rebound with the VN-Index advancing 1.97 per cent to 486.61 points, Meanwhile the VN30 shed 1.47 per cent to 545.49 points, while large cap stocks continued to add value last week, according to the website Vietstock.vn.
On the Ha Noi Stock Exchange, the HNX-Index also rose 2.08 per cent to close at 60.40 points. Trading volume remained high thanks to the return of foreign investors as net buyers, buoying the market's upward momentum and investor confidence.
Foreign investors remain net buyers during the week with 5.26 million shares changing hands worth VND109 billion (US$5.1 million). Cash flows favoured GAS with VND23.6 billion, HPG with VND23 billion and VCB with VND12.8 billion. Meanwhile, selling activity revolved around Dong Phu Rubber JSC (DPR) and Dry Cell and Storage Battery Joint Stock Company (PAC).
On the Ha Noi Stock Exchange, foreign traders were net buyers for the fourth consecutive day, trading VND16.8 billion. Sai Gon-Ha Noi Bank Commercial Bank (SHB) was hot property among foreign investors trading around VND7.7 billion, while PVS and VCG followed closely with VND5.78 billion and VND3.5 billion in respective sales.
According to Vietstock analysts, positive momentum of trading sessions was quickly pulled back profit-taking performance of traders in the market last week. The buyers starts to become more cautious in buying, making liquidity to decline.
According to FPT Securities, the rally last week was driven by demand from domestic investors. However, the upward trend battled with strong pressure from investors seeking short term yields.
Business performance defied investor expectations with listed companies outperforming forecasts in the third quarter. The market's sugar high is expected to last until October, however businesses warned investors that the good news would not last long.
Businesses urged investors to be cautious and wait for new signals from the market. Today, the VN-Index is predicted to level 480-490 points while HNX-Index will struggle around 61 points.
vietnamnews
