Market riding high thanks to tight supply
Market riding high thanks to tight supply
Benchmark indices were riding high on Tuesday as optimistic sentiment lifted stocks across the board.
The market’s breadth was skewed in favour of bulls with advancers outnumbering decliners by 806 to 133.
On the Ho Chi Minh Stock Exchange (HoSE), the benchmark VN-Index surged by 56.42 points, or 4.81 per cent, to reach 1,228.37 points.
The market’s liquidity was lower than the previous session with 543 million of stocks traded on the southern bourse, equivalent to around VND13.3 trillion (US$575 million).
According to analysts, many holders revoked their selling orders amid strong buying forces, leading to tight supply and soaring prices.
Notably, the 30 biggest stock tracker VN30-Index gained 64.47 points, or 5.31 per cent, to end at 1,279.55 points. In the basket, 17 stocks climbed and 13 hit ceiling prices.
“VN-Index saw a lot of red on the screen in the morning. However, as selling pressure began to ebb away, buying forces built up, leading to a market pick-up since 10am,” said the analysts.
Among ten stocks leading the market rallies, Bank for Investment and Development of Vietnam (BID) was the largest gainer yesterday, increasing by 7 per cent in market cap. Other rising stocks include PetroVietnam (GAS), Masan Group (MSN), VPBank (VPB), Vietnam Dairy Products (VNM) and Hoa Phat Group (HPG).
By sector, banking stocks were the main contributor to the bullish market. Specifically, VPBank (VPB), VietinBank (CTG), Techcombank (TCB), Military Bank (MBB) and Sai Gon-Thuong Tin JS Bank (STB) were among banks with ceiling-priced stocks.
Benchmark indices were also driven up by manufacturing stocks with Masan Group (MSN) and Vietnam Rubber Group (GVR) hitting ceiling prices. The two stocks were followed by Vietnam Dairy Products (VNM) with 6.38 per cent and Hoa Phat Group (HPG) with 5.23 per cent.
In the realty sector, the trio stocks of the Vin family – Vingroup (VIC), Vinhomes (VHM) and Vincom (VRE) – also enjoyed upward trends due to high demand. Although a few stocks bucked the trend, notably Sunshine Homes (SSH) and Thaiholdings (THD), buying forces were so strong that green and purple stocks dominated the sector.
On the Ha Noi Stock Exchange (HNX), the HNX-Index climbed by 8.39 points, or 2.73 per cent, to 315.44 points.
Foreign investors withdrew from the market as they net sold a total VND38.61 billion on two main exchanges. Of which, they net sold VND27.76 billion on HoSE and VND10.85 billion on HNX.
