Shares advance on strong cash flows
Shares advance on strong cash flows
Shares advanced yesterday on the two stock exchanges when investors sought opportunities in medium-cap and penny stocks.
On the HCM Stock Exchange, the VN-Index rose 0.5 per cent to close at 703.8 points. The southern market index decreased 0.2 per cent on Thursday.
On the Ha Noi Stock Exchange, the HNX-Index also gained 0.5 per cent to end at 86.04 points, extending its two-day rally to 0.9 per cent.
Liquidity remained positive, with a total of 186.3 million shares worth a combined VND3.5 trillion (almost US$155 million) traded in the two markets.
Sharp increase in the global natural rubber price lifted local rubber companies.
Hoang Anh Gia Lai Group (HAG) and its agricultural arm Hoang Anh Gia Lai Agricultural (HNG), along with Dong Phu Rubber (DPR), Phuoc Hoa Rubber (PHR), Hoa Binh Rubber (HRC), Hoang Anh Gia Lai Group (HAG) advanced between 2 per cent and 5 per cent.
Oil and gas stocks also recovered from a two-day slump, as most of the biggest companies--including PV Gas (GAS), PetroVietnam Drilling and Wells Service (PVD), PetroVietnam Technical Services (PVS) and Petroleum Equipment Assembly & Metal Structure (PXS)--increased 1.7-2.8 per cent.
Low-priced stocks like Truong Thanh Furniture (TTF), Agribank Securities Co (AGR), FLC Group (FLC) and Urban Development & Construction (UDC) soared to the maximum daily rise limit following heavy investments.
“Market indices were not governed from a few large stocks which play the leading role. The positive performance was contributed from the consensus of the large cap stocks as well as the major part of the market,” analysts at BIDV Securities Co wrote in a market report.
Liquidity maintained healthy levels as cash flows shifted to other sectors that focused on not only a few big stocks like in the previous rallies, the report said.
According to Vietnam Investment Securities Co, the market is accumulating values and in some sessions, even the stocks which are expected to rise in the long term - like Hoa Phat Group (HPG), FPT Corp (FPT) and Kinh Bac City Development (KBC) - can experience downward correction.
“Such correction is not too bad, as it sometimes is a good opportunity for other investors to make a spillover impact to the whole market,” it said in a report.
Foreign investors continued to collect local shares, picking up total net value of nearly VND24 billion. They bought a total net value of VND56 billion on Thursday.
