Shares recover on bottom fishing
Shares recover on bottom fishing
Vietnamese shares recovered yesterday from Monday’s sharp fall which sent stocks down to attractive prices, thus triggering investors to buy in.
The benchmark VN-Index on the Ho Chi Minh Stock Exchange was up 0.50 per cent to close at 951.16 points.
The VN-Index lost 1.40 per cent on Monday.
More than 162.3 million shares were traded on the southern bourse, worth VND3.4 trillion (US$143 million).
Some large-caps stocks inched up thanks to bottom purchasing and helped the market recover slightly, such as Bank for Investment and Development (BID), increasing by 4.6 per cent, Vincom Retail (VRE), climbing by 1.5 per cent, Vietcombank (VCB), rising by 1.1 per cent, Sabeco (SAB), up by 1.1 per cent.
Petroleum stocks like PetroVietnam Drilling and Well Services Corporation (PVD), Drilling Mud Joint Stock Corporation (PVC), Viet Nam National Petroleum Group (PLX) and PetroVietnam Gas JSC (GAS) all gained.
This went against the global trend in oil prices which declined on June 3 due to rising trade tensions between the US and Mexico and China.
Brent crude oil futures prices fell 71 cents, or 1.2 per cent, to $61.28 a barrel. US West Texas Intermediate (WTI) crude futures dropped 25 cents, or 0.5 per cent, to $53.25 a barrel.
On the other side, some other pillar stocks like Vietinbank (CTG), Kido Group (KDC), Techcombank (TCB) and budget carrier Vietjet Air (VJC) were strongly hit and weighed down on the indices.
On a sector basis, sectors that increased included oil and gas, banking, food and beverages, real estate, insurance and construction.
On the negative side, agriculture, securities, logistics and construction materials were among the sectors that reported losses.
According to Bao Viet Securities Company (BVSC), VN-Index is forecast to head towards the resistance zone of 958-963 points in the coming sessions. However, after the previous plummet, the market gain is only considered a technical increase.
“The market is still facing the risk of decline in the short run with the possibility of falling to the support zone of 930-940 points, before sending signals of recovery,” it said.
Cashflows are showing interest in stocks that have declined deeply to their support zones.
As the market is maintaining a downtrend in the short run, stock exposure should be limited at 20-25 per cent of the portfolio, BVSC said.
On the Ha Noi Stock Exchange, the HNX-Index went down 0.22 per cent to end at 103.06 points.
More than 17.2 million shares were traded on the northern exchange, worth VND222 billion.
The northern market index shed nearly 1.03 per cent Monday.
The UPCOM Index on the Unlisted Public Company Market (UPCoM) edged up 0.18 per cent to finish at 54.90 points. The unlisted market index lost 0.59 per cent to finish at 54.90 points in the previous session.
