Market bounces back as blue chips make a return

Market bounces back as blue chips make a return

Shares rebounded yesterday on the two national bourses, ending a five-day losing streak, as blue chips gained ground.

On the HCM Stock Exchange, the VN-Index regained 1.05 per cent to end at 580.31 points.

Many blue chips rallied yesterday, including Bao Viet Holdings (BVH), VinGroup (VIC), Phu My Fertiliser (DPM), Masan Group (MSN) and PV Gas (GAS), which increased from 0.8-1.7 per cent.

Twenty-three of the top 30 shares by market value and liquidity gained while only six declined and one closed flat. This helped the VN30 grow 1.22 per cent to end at 642.48 points.

"Many traders returned to buy local shares, particularly blue-chips, on lower valuations at the back of the past downward run. Risk appetites grew on speculation that the market had overacted to the correction period," said analysts at FPT Securities Co.

Trading decreased from the previous session, however, as both market volume and value fell 10 per cent, totalling nearly 118 million shares and fund certificates, worth VND2.238 trillion (US$106 million).

Real estate developer FLC Group (FLC) became the most active code yesterday after several days of sell-off. More than 9.7 million FLC shares changed hands at VND13,700, up 2.24 per cent over Wednesday's close.

On the Ha Noi Stock Exchange, the HNX-Index grew 1.19 per cent to close at 83.60 points, while the HNX30 also gained over 2 per cent to end at 172.08 points.

Overall market volume and value declined, however, as just 56 million shares worth VND613 billion ($29 million) were traded, down 40 per cent in volume and value compared with Wednesday.

PetroVietnam Construction Corp (PVX) was still the most active with nearly eight million shares traded, but prices tumbled 1.85 per cent to close at VND5,300 per share.

After one day of net buying on Wednesday, foreign investors returned to be net sellers yesterday on the HCM City market, unloading shares worth VND37.34 billion ($1.8 million). The shares under their selling pressure were large-cap shares, such as DPM, VIC and property Hoang Anh Gia Lai Co (HAG).

However, foreigners were net buyers on the Ha Noi stock exchange, picking up shares worth VND9.41 billion ($446,000).

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