Shares reverse downturn, propped up by banks and brokerage houses
Shares reversed morning losses and recovered in Wednesday’s afternoon session after a two-day fall, propped up once more by the growth of banking and securities stocks.
The VN-Index on the Ho Chi Minh Stock Exchange increased nearly 1 per cent to close at 1,332.90 points.
The southern exchange’s index lost nearly 4 per cent in the previous two sessions after a long rising run.
On the Ha Noi Stock Exchange, the HNX-Index climbed 3.42 per cent to end the day at 316.87 points. The northern index slumped by more than 7 per cent in the last three sessions.
Liquidity declined but remained high with a total of 974 million shares worth more than VND29.5 trillion (US$1.3 billion) traded on the two markets, down 16 per cent in volume and 18 per cent in value compared to Tuesday’s figures.
Growing demand for banking, securities and property shares drove up the market.
Data on the vietstock.vn showed eight of 10 most influential shares on the Ho Chi Minh Stock Exchange on Wednesday were banks, including Vietcombank (VCB), Vietinbank (CTG), Techcombank (TCB), Military Bank (MBB) and Asia Commercial Bank (ACB) which increased between 2-5.6 per cent each.
Brokerage houses gained as well. Twenty-four of 26 listed securities companies climbed, six of which hit the ceiling prices – the daily limit increase of 10 per cent, including VNDirect Securities (VND), Hoa Binh Securities (HBS), BIDV Securities (BSI), Asia-Pacific Securities (APS), Vietnam Industrial & Commercial Securities (VIG) and Wall Street Securities (WSS).
Saigon Securities (SSI), the biggest brokerage company, also soared 6 per cent.
In the early afternoon Wednesday, a number of securities firms reactivated the function allowing investors to cancel and change orders on the Ho Chi Minh Stock Exchange such as FPT Securities, KB Vietnam Securities, VPBank Securities or Mirae Asset Securities. Others who have not made similar decisions have allowed brokers to perform at the request of customers.
According to market insiders, this move of the securities companies will facilitate trading of investors.
Previously, commenting on the deep decline of the market in the last two sessions, analysts at Viet Dragon Securities Co. said this was a normal correction cycle of the market after a long rally, especially when large-cap stocks gained heavily.
Foreigners remained net sellers on the two exchanges, offloading shares worth net sell value of VND668 billion.