Market opens new month on a positive note despite low liquidity

Market opens new month on a positive note despite low liquidity

Investors adopted a wait-and-see approach ahead of forthcoming market developments.

Sacombank's head building in HCM City. Shares of the lender soared 5.1 per cent on Wednesday, leading the market's uptrend. —Photo courtesy of the bank

The stock market posted a modest gain on Wednesday despite low liquidity, as investors adopted a wait-and-see approach ahead of forthcoming market developments. 

The VN-Index on the Ho Chi Minh Stock Exchange (HoSE) increased by 3.35 points, or 0.2 per cent, to 1,665.05 points. The session recorded 175 stocks advancing and 139 declining.

Liquidity on the northern bourse fell to nearly VNĐ21.5 trillion (US$814 million) from over VNĐ32 trillion during the previous session. 

The VN30-Index, tracking the 30 biggest stocks on HoSE, also finished higher at 1,870.63 points, up 7.5 points, or 0.4 per cent. 

On the Hanoi Stock Exchange (HNX), the HNX-Index also experienced a slight increase of 0.06 points, or 0.02 per cent, to 273.22 points.

The financial sector emerged as the focal point of the trading day, with several stocks seeing substantial gains. 

EVF General Finance JSC (EVF) hit the ceiling price, while Sacombank (STB) climbed by 5.1 per cent. Other significant performers included LPBank (LPB) up 3.03 per cent, TPBank (TPB) jumping 2.39 per cent, Asia Commercial Joint Stock Bank (ACB) soaring 1.18 per cent, Techcombank (TCB) up 1.85 per cent, Vietinbank (CTG) rising 1.38 per cent and Vietnam International Commercial Joint Stock Bank (VIB) up 1.01 per cent.

The securities sector also posted positive performances, with VIX Securities (VIX) rising by 2.49 per cent.

The real estate and public investment sectors displayed a mixed performance, though more stocks ended the day with gains. Vinhomes (VHM) and Vingroup (VIC) plummeted 1.75 per cent and 2.8 per cent, respectively, while Vincom Retail (VRE) surged nearly 3.3 per cent. 

However, foreign investors extended their net selling streak on HoSE, with a total value of more than VNĐ1.65 trillion. They also net sold nearly VNĐ125.7 billion on HNX.

Experts said that the VN-Index's ability to maintain its upward trajectory amid significant foreign net selling reflects robust support from domestic capital, particularly in the banking and real estate sectors. 

Nevertheless, pressure from foreign selling may continue to influence short-term trends. Investor sentiment will need to closely monitor developments from ETF funds and international markets, especially regarding global interest rate fluctuations and foreign capital movements in emerging markets.

In the short term, the VN-Index is expected to fluctuate within a range of 1,650 to 1,680 points, experiencing some volatility as profit-taking pressures emerge.

Mid-cap banking, real estate and retail stocks may continue to attract capital inflows, buoyed by optimistic expectations for third-quarter earnings. 

Bizhub