Blue chips initiate slight recovery
Blue chips initiate slight recovery
Shares rose slightly yesterday after a brief decline on Monday as large-cap stocks recovered on rising optimism over third-quarter earnings prospects.
The VN-Index, the measure of 312 stocks on the HCM Stock Exchange, inched up 0.2 per cent to close trade at 682 point. It decreased 0.9 per cent on Monday.
On the Ha Noi Stock Exchange, the HNX-Index tracking 379 stocks managed to close marginally up at 85 points after sinking for most of the trading day. The index also decreased 0.6 per cent on Monday.
Many large-cap stocks recovered yesterday, including the highest valued one such as insurer Bao Viet Holdings (BVH); up 2.3 per cent; dairy giant Vinamilk (VNM), up 1.3 per cent; steelmaker Hoa Phat Group (HPG), up 2.3 per cent; and software producer FPT Corporation (FPT), up 1.7 per cent.
Some still lost value, including lender BIDV (BID), real estate developer VinGroup (VIC), PV Gas (GAS), Saigon Securities Inc (SSI) and Kinh Bac City Development (KBC) and Tan Tao Investment Industry Corporation (ITA).
"Prices of several blue chips have become attractive after recent deceleration. The declining sessions will likely provide buy-in opportunities for investors in good stocks at reasonable prices," wrote analysts at Saigon Hanoi Securities Co.
However, the overall market breadth was negative yesterday as 214 of 692 stocks declined, 209 increased and 269 closed unchanged.
Liquidity increased with over 184 million shares worth almost VND3 trillion (US$134.5 million) traded in the two markets, up 19.7 per cent in volume and 36.4 per cent in value compared to Monday's levels.
The market was forecast to move sideways in the short term, Tran Duc Anh, analyst at Bao Viet Securities Co, wrote in a note. However, he maintained a positive view on the market outlook in the medium term with the VN-Index reaching 700-710 points.
Lender BIDV yesterday followed Vietcombank, LienVietPostBank and HDBank to reduce its lending rates. This is a positive signal for the whole economy and is expected to draw other banks to similar action in the near future.
Foreign investors continued to offload local shares. They were responsible for a net sell value of VND47 billion in the two markets, down 34.7 per cent from the previous trade.
