Increased liquidity fails to lift shares on national exchanges

Jun 18th at 14:39

18-06-2014 14:39:07+07:00

Despite a significant capital inflow into the market yesterday, the VN-Index on the HCM City Stock Exchange closed in the red.

The VN-Index slightly lost 0.02 per cent to end at 572.25 points, dragged down by two market pillars of PetroVietnam Gas Corporation (GAS) and Masan Group (MSN).

GAS dropped 0.9 per cent to end at VND105,000 (US$5) while MSN closed 2.5 per cent lower at VND97,000 ($4.6) per share as both suffered from net selling of foreign investors.

Although more than half of blue chips advanced with the VN30-Index, tracking the performance of the 30 top stocks by capitalisation and liquidity seen rising by 0.32 per cent to 620.61 points, losses from GAS and MSN prevented the southern bourse's gauge from advancing.

Blue chips, which also posted losses yesterday, also included Vingroup (VIC), Hoa Sen Group (HSG), Bao Viet Holdings (BVH) and Eximbank (EIB).

However, with improved purchasing power, the trading volume rose by 24 per cent over the previous trading session to reach nearly 108.7 million shares, worth VND1.58 trillion ($75.2 million).

According to Viet Nam Investment Securities, if market liquidity continued to improve in the coming trading sessions, there could be a break-out for the VN-Index to exceed 580 points.

Stocks of securities sector witnessed a rising wave yesterday owing to the inflow of speculative capitals.

HCM City Securities (HCM) added 5.01 per cent to VND35,600 ($1.69) per share, with more than 1.1 million shares changing hands, and Saigon Securities rose by 3.16 per cent, with nearly 4 million shares traded among other gainers such as Agribank Securities (AGR) and BIDV Securities (BIDV).

Real estate stocks led the southern bourse by trading volumes. FLC Group (FLC) ranked first, with 11.46 million shares changing hands, followed by Tan Tao Group (ITA), with 9.58 million shares, and Hoang Quan Corporation (HQC), with 8.85 million shares traded.

Property and securities stocks were also the market's highlight on the northern bourse, which helped the benchmark indices rebound yesterday.

The HNX-Index ended 0.74 per cent higher at 76.99 points while the HNXFF-Index, composed of stocks with a minimum free float rate of 5 per cent, added 0.99 per cent to 77.7 points.

Tracking the 30 largest stocks of the capital city's bourse, the HNX30-Index finished 1.29 per cent higher at 154.91 points.

Trading volume and value were both 27 per cent higher than the previous trading session, with 51.6 million shares changing hands, worth VND525.8 billion ($25 million).

Foreign investors continued to be net buyers but with net volume falling by 13.69 per cent over the previous trading session to 1.7 million shares, worth VND30.63 billion ($1.45 million).

FPT Securities said that the review of exchange-traded fund's portfolios and the year's first half business results were factors that had an impact on the market trend.

In the short term, the benchmark indices might continue to face difficulties when approaching the resistance band of 580 points, but losses, if occurred, would not be significant, the company said.

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