Market rebounds from Tuesday sell-off

Feb 13th at 11:00

13-02-2014 11:00:10+07:00

After the shock of the final minutes of the Tuesday trading session, when there was strong selling pressure for profit-taking, the market rebounded yesterday with a significant inflow of capital.

The green colour spread on the billboard on the HCM City Exchange, as the bourse's top 30 stocks by capitalisation and liquidity ended higher yesterday, except Kinh Do (KDC), which closed at its reference price.

Those gains helped the VN30-Index rise by 1.66 per cent to end the day at 637.79 points.

Also, Becamex IJC (IJC) increased by VND700 (US$0.03) per share yesterday to its ceiling price of VND11,500 ($0.49).

Many blue chips posted huge gains yesterday. Insurance company Bao Viet Group (BVH) rose 5 per cent to VND48,000 ($2.2) per share, Da Nang Rubber Corporation (DRC) was up 4.8 per cent to VND45,700 ($2.1) per share and technology giant FPT Group (FPT) earned VND2,000 ($0.095) per share to VND57,000 ($2.7).

Overall on the southern bourse, 198 codes added value yesterday, while only 51 declined in value.

The VN-Index strongly gained yesterday, with a rise of 1.87 per cent to 564.25 points.

About 126 million shares changed hands, with a high trading value of VND2.14 trillion ($101.9 million).

On the Ha Noi Exchange, liquidity remained high with a total of 66.5 million shares, with a total value of VND632.5 billion ($30.1 million) traded.

The HNX-Index rose by 1.58 per cent to end at 76.75 points, while the HNXFF-Index increased by 1.11 per cent to close at 75.83 points.

Composed of the capital's top shares, the HNX30-Index earned 1.89 points to reach 150.28 points, a rise of 1.27 per cent.

According to FPT Securities, the purchasing power improved due to the participation of foreign investors. Despite the blue chips' gains, midcaps and penny groups remained in the spotlight yesterday, especially for real estate stocks.

The government's boost to the distribution of the VND30 trillion ($1.42 billion) support package for the property market helped raise the shares of the real estate sector.

FPT Securities said the market trend will be positive in the medium term, but in the short term fluctuations will occur.

The BIDV Securities Company was optimistic about the market trend in the long term. However, it forecast huge fluctuations during this month, and expects the band for the VN-Index to be between 530-560 points.

The Viet Nam Investment Securities noted that midcap companies will rise to be the market's spotlight and attract capital inflows.

The company also urged investors to pay attention to risks while taking advantage of opportunities.

Finally, net purchases by foreign investors yesterday was worth VND85 billion ($4.04 million).

vietnamnews