Stocks rescued by late purchasing
Stocks rescued by late purchasing
Vietnamese shares struggled to rise yesterday on late buying while foreign investors remained net sellers on fears of a US interest rate hike in September.
The benchmark VN Index on the HCM Stock Exchange edged up 0.2 per cent to end at 659.16 points.
The HNX Index on the Ha Noi Stock Exchange gained 0.5 per cent to close at 83.11 points, ending a three-day drop of 1.3 per cent.
"Stocks were traded mostly lower during the day, and the VN Index fell to near 650 points at some specific moments," Sai Gon-Ha Noi Securities Corp (SHS) wrote in its daily report.
"Late buying helped pick market up as investors tried to swoop in large-cap stocks that had fallen to attractive price ranges during the session."
Large-cap stocks such as dairy firm Vinamilk (VNM), confectionery company KIDO Corp (KDC), property developer Vingroup JSC (VIC), and steel producers Hoa Phat Group (HPG) and Hoa Sen Group (HSG) were the ones that benefited from the late buying, SHS said.
VNM, KDC, VIC, HPG and HSG advanced between 1.6 per cent and 6.9 per cent.
VNM and HSG were also supported by the market expectations they would be added into the investment portfolio of London-based investment fund FTSE Russell's FTSE Vietnam ETF next week, Bao Viet Securities Corp (BVSC) wrote in a note.
On the opposite side, "Energy stocks such as PetroVietnam Gas Corp (GAS), PetroVietnam Drilling and Well Services Corp (PVD) and PetroVietnam Mud Drilling Corp (PVC) suffered from lower global oil prices," SHS said.
US crude was traded at US$46.92 a barrel, down more than 1 per cent from Monday. It has slid 3.3 per cent from a seven-day rally of 16.3 per cent since August 10.
Foreign investors yesterday remained net sellers for an eighth day with total net sell value of more than VND184 billion (US$8.2 million).
It should be noted that investors across Asian markets have been cautious as the US central bank at its meeting next month will increase interest rates for the first time since December 2015.
The rate hike and market expectations have recently weakened local currencies against the US dollar. Viet Nam's central bank yesterday raised the daily reference mid-point rate for local trading between the Vietnamese dong and the dollar by VND11 to VND21,886. The mid-point rate has jumped VND30 from last week's closing rate.
More than 138 million shares worth nearly VND2.77 trillion were exchanged yesterday, an increase of 7.3 per cent in value from Monday.
