VNM keeps VN-Index afloat
VNM keeps VN-Index afloat
Strong profit taking at many large-caps dragged the local market down after three consecutive rising sessions on Wednesday but the VN-Index was still above the 500-point level thanks to VNM.
As mid and large caps did not perform well, the VN-Index retreated as soon as the opening bell rang. Among heavyweights, only VNM advanced 1.4% while BVH, GAS, MSN and VCB retreated.
The VN-Index closed the day at 500.67, dropping 1.55 points, or 0.31%, against a session earlier. Trading volume and value on the southern bourse also declined 10.8% and 15.7% to 64.4 million shares worth VND953.5 billion.
Viet Capital Securities Company said that VNM received investors’ attention with a block deal of over one million shares at the ceiling price.
The broker also noticed active trading of TCM, the only listed textile company to benefit from the Trans-Pacific Partnership (TPP) agreement, upon news of good nine-month business results and the hope from the Bali meeting that TPP negotiations could be completed as soon as the end of this year. The ticker rose 1.8% to VND16,900 each on volume of around 850,000 shares.
Foreigners only injected a net amount of VND23 billion on the southern bourse but their active participation accounted for as much as a quarter of the total turnover. Their trading level had been at just around 10% of the market value in the last two weeks.
The Hanoi market also dropped back with turnover slumping to nearly VND210 billion. The HNX-Index lost 0.06 point, or 0.11%, against the previous day to close at 61.16.
Viet Dragon Securities Company said that the downside risk has turned clear as the VN-Index is nearing the previous peak from 500 to 510 points.
“We think that negative information that could affect the markets in the last two sessions this week is whether or not a bankruptcy in the U.S. as the largest economy in the world. In the World Economic Outlook report, the International Monetary Fund (IMF) said that if the U.S. fails to raise debt ceiling, the global economy could suffer a new shock and its economic growth will fall behind the target set up previously,” VDSC said in its comment on Wednesday.
“Given these concerns, we recommend that the investors should observe the markets further and during falling sessions, they should disburse partly into stocks predicted to have good business results in the third quarter,” the broker added.
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