Market extends rallies, boosted by rising risk appetite
Market extends rallies, boosted by rising risk appetite
Indices inched higher on Wednesday, as risk asset demand was strong enough to maintain the market's bullish trend.
The market benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) gained for second straight day, claiming back all loss of 21.9 points on Monday.
Accordingly, it ended the session at 1,268.43 points, up 35.05 points, or 2.84 per cent. It had rose nearly 14.6 points in the previous trade.
The market's breadth was positive with up to 415 stocks adding points, of which 48 stocks registered the biggest intraday gain of 7 per cent, while only 49 stocks declined.
Liquidity also rose sharply over the previous session, with over VND16.57 trillion (US$714.3 million) worth of shares, equal to a trading volume of nearly 655.2 million shares, traded on HoSE.
On the Ha Noi Stock Exchange (HNX), the northern benchmark index HNX-Index also surged 8.95 points, or 2.93 per cent, to 314.91 points. Investors poured nearly VND2.2 trillion into the bourse, equivalent to nearly 96 million shares.
Stronger buying spree in the afternoon trade helped lift the market's general sentiment, boosting shares to edge higher.
The VN30-Index, tracking 30 biggest stocks in market capitalisation on the southern bourse, climbed by nearly 38 points, or 2.98 per cent, to 1,310.7 points. Twenty-seven stocks in the VN30 basket witnessed strong performance yesterday, with two stock hitting ceiling prices which were FPT Corporation (FPT) and Phu Nhuan Jewelry JSC (PNJ). On the other hand, only two stocks finished lower and one stayed unchanged.
Top stocks influencing the uptrend yesterday were still attractive sectors like banking and manufacturing. Of which, VPBank (VPB) led the winning stock group, followed by Vietcombank (VCB), Vinamilk (VNM), BIDV (BID), PV Gas (GAS) and Vietnam Rubber Group (GVR). The stocks were all up at least 2.46 per cent.
On the contrary, some stocks still faced a sell-off on negative news such as Hoa Phat Group (HPG) and FLC Faros Construction JSC (ROS). Of which, HPG lost another 1.29 per cent yesterday due to rising concerns about the sector's gloomy outlook. The company shares had fallen for five consecutive sessions.
Meanwhile, ROS extended its long losing streak after HoSE put it on the control list starting May 30. The move was due to late submission of the 2021 audited financial statement.
According to Saigon - Hanoi Securities JSC (SHS), for long-term investment, the stock valuation is still at appealing levels as the price per earning ratio (P/E) of the VN-Index and the VN30-Index stays around 13x, lower than the recent 5-year average.
On the technical front, the VN-Index is still in the recovery wave. After a week of rebounding and some correction sessions, the benchmark is trading around 1,220-1,250 points and many stocks are in an accumulation period, waiting for the opportunity to recover. Therefore, there are more chances to participate in the market in the short-term, SHS added.
On the other hand, foreign investors hesitated to join the market, as they just net bought a small amount on HoSE with a value of VND6.05 billion. On HNX, they net bought VND22.3 billion.
