Shares climb for third day on strong cash flow
Shares climb for third day on strong cash flow
Shares climbed for a third day this week on stronger cash flow but divergence is also expanding during the earnings season.
The VN-Index on the Ho Chi Minh Stock Exchange increased 0.66 per cent to close Wednesday at 1,249.76 points, lifting its gain this week to 3.6 per cent.
On the Ha Noi Stock Exchange, the HNX-Index added 0.77 per cent to close at 298.11 points. The northern market’s index has gained 3.3 per cent in the past three days.
Liquidity remained positive with 877 million shares worth VND19.3 trillion (US$833 million) being traded in the two markets. Especially, trading value in HCM City’s exchange hit a 50-day high of VND17.6 trillion.
“The market’s uptrend is prolonged due to the positive spread of cash flow,” said Phuong Pham, a stock analyst at Viet Dragon Securities Co in a daily report.
“However, with the increase of the two previous sessions, the short-term profit-taking cash flow also took advantage. This led to a divergence in some industry groups, especially those that had a positive move.”
Overall market condition was good with 398 stocks rising, 265 declining and 241 closing flat.
PV Gas (GAS) topped the list of shares lifting the VN-Index most with a growth of 3.5 per cent. However, in the oil and gas sector, other big players – PV Power (POW) and Petrolimex (PLX) – decreased 0.4 per cent and 0.2 per cent, respectively.
Steel shares also impressed the market. Hoa Sen Group (HSG) and Nam Kim Group (NKG) hit the ceiling prices of 7-per-cent growth while the biggest producer Hoa Phat Group (HPG) climbed 3.7 per cent. Tien Len Steel JSC (TLH) and SMC Trading & Investment (SMC) rose respectively 5.9 per cent and 5 per cent.
On the dark side, Vinhomes (VHM) and Vincom (VIC) drove down the market most. After leading the market upturn on Tuesday, VHM turned to decline, losing 1 per cent while VIC dropped 0.9 per cent.
Other big losers included Vietnam International Bank (VIB), construction giant Becamex IDC (BCM), Techcombank (TCB), insurer Bao Viet Holdings (BVH) and Mobile World Investment (MWG).
“Facing the short-term resistance level of 1,240-1,250 points, the VN-Index is likely to fluctuate and absorb supply before continuing to recover to the target price range of 1,260-1,280 points,” Phuong said.
Foreign traders moved in opposite directions on the two exchanges. They were responsible for a net buy value of VND656 billion in HCM City but offloaded shares worth a net value of VND622 million in the capital city.
