Large-cap stocks fuel market rebound
Large-cap stocks fuel market rebound
Shares rebounded yesterday on the two national stock exchanges. boosted by stronger investor confidence and a return of foreign buys.
The VN Index on the HCM Stock Exchange edged up 0.7 per cent after a two-day fall, closing yesterday’s trade at 666.9 points. The gauge had decreased by 1.83 per cent in the previous two sessions.
On the Ha Noi Stock Exchange, the HNX-Index also increased 0.6 per cent to end at 80.3 points following a 0.2-per-cent drop on Tuesday.
Large-cap stocks recovered.
Dairy firm Vinamilk (VNM)--the biggest listed stock--increased 1.2 per cent to VND126,100 (US$5.56) a share following encouraging earnings estimate.
Vinamilk expects to earn a net profit of over VND9.3 trillion ($409.7 million) for this whole year, up 20 per cent year-on-year and surpassing the yearly target by 13 per cent.
Brewery giant Sabeco (SAB), the second largest stock by market capitalisation, rebounded 1.8 per cent yesterday to settle at VND200,800 a share after a two-day decline.
Big gainers also included PV Gas (GAS), lender BIDV (BID), insurer Bao Viet Holdings (BVH) and private equity Masan Group (MSN) with increases between 0.8 per cent and 1.7 per cent.
Overall market conditions were rather neutral, with 212 stocks advancing, 202 declining and 280 remaining flat.
Liquidity increased with a total of 164.4 million shares worth over VND3.3 trillion traded in the two markets, up 21.8 per cent in volume and 38.3 per cent in value compared to Tuesday’s figures.
A large number of shares were traded via negotiation method yesterday, including 20.2 million shares of Sai Gon Telecommunication & Technologies Corporation (SGT) worth VND524.7 billion, 1.25 million shares of Phu Nhuan Jewelry (PNJ) worth VND91 billion and 4.4 million shares of Kinh Bac City Development (KBC) worth VND61 billion.
According to analysts at Vietnam Investment Securities Co, the VN-Index has been distorted by movements of large-cap stocks such as Vinamilk and Sabeco in recent sessions and has not reflected the true developments of the market.
“Shares showing strong gains from the recent rally will experience profit-taking pressure, and money will continue to shift to seek other investment opportunities. Reporting season is coming, and this will support stock prices in the next rally,” they wrote in a report.
Foreign investors returned to be net buyers in HCM City’s exchange yesterday after five-day net selling streak. They collected shares worth a net value of VND80.4 billion.
However, they remained net sellers in Ha Noi’s market, for a value of VND11.7 billion.
