Shares recover after two-day decline
Shares recover after two-day decline
A strong cash flow poured into large-cap stocks during the ATC trading session helped the benchmark VN-Index recover nearly six points, returning to level 1,170 points.
The VN Index on the HCM Stock Exchange rose 0.51 per cent on Thursday to close at 1,173.02 points, reversing from its two-day decline of 3.1 per cent.
Nearly 180 million shares were traded on the southern bourse, worth VND6 trillion (US$233 million).
The market trading condition was positive with 157 gaining stocks against 131 declining ones and 67 others ending flat.
Large-cap stocks performed well to boost the southern exchange as the large-cap VN30 Index increased by 0.55 per cent to 1,143.50 points.
Eightteen of the 30 largest-cap stocks by market capitalisation in the VN30 basket advanced, included Masan Group (MSN), steel producer Hoa Phat Group (HPG), property developer Vingroup (VIC), Vincom Retail JSC (VRE), Sai Gon Securities Incorporation (SSI) and Binh Minh Plastic (BMP).
Viet Dragon Securities Co (VDSC) said tension rose on the global market as the US President Trump accused Syria of using chemical weapons attack on the Damascus of Douma. The US and allies warned of action on Syria in 72 hours, accelerating ‘Russia-West’ tension.
In response to the news, all US stocks sagged when the key indexes Dow Jones, Nasdaq and S&P500 respectively fell by 0.9 per cent, 0.36 per cent and 0.55 per cent after the strong gains in the previous sessions amid easing fears of a trade war between the US and China. However, the announced period “in the next 24 to 48 hours” has passed and the US has not made any decision on Syria attack. The escalating Middle East tensions also helped oil prices have a third consecutive strong price gain to $66.7 per barrel for West Texas Intermediate (WTI) and $71.9 per barrel for Brent oil.
The Vietnamese stock market, which is experiencing a hot-rally stage, reacted to the news.
Cash flow tended to move toward the oil and gas shares amidst the political tensions in the Middle East, namely PetroVietnam Gas Joint Stock Corporation (GAS), up 3.2 per cent, PetroVietnam Technical Services Corporation (PVS), increasing 7.2 per cent and PetroVietnam Coating JSC (PVB), rising 4.1 per cent.
BIDV Securities JSC (BSC) said in its daily report that psychological caution before geopolitical tensions will continue to dominate the market. Investors should monitor the performance of the indicators and balance the margin since the market outlook is not so clear.
Meanwhile, Bao Viet Securities Company (BVSC) said that selling pressure was reduced after two bearish sessions and cheaper stock prices attracted investors back from the previous strong profit-taking, boosting VN-Index to recover on Thursday.
The index is likely to increase amid market’s divergence in the next sessions, BVSC said.
On the Ha Noi Stock Exchange, the HNX Index was up 1.41 per cent to end at 135.63 points. It lost a total of 3.12 per cent in the last three sessions.
More than 54 million shares were traded on the northern exchange, worth VND913 billion.
The UPCOM Index on the Unlisted Public Company Market (UPCoM) lost 0.31 to close at 59.67 points, totaling a four-day decline of 1.6 per cent.
