Improved liquidity continues to support VN-Index

Improved liquidity continues to support VN-Index

Trading value on HoSE increased over 10 per cent from the previous trade to VNĐ21.38 trillion.

Masan Consumer's products displayed on shelves at a supermarket. Shares of the company climbed 1.5 per cent on Tuesday, cushioning the market's profit-taking pressure. — Photo masanconsumer.com

The benchmark VN-Index edged higher on Tuesday, supported heavily by Vingroup (VIC), but mounting profit-taking dragged a broad range of blue-chip and mid-cap stocks lower after the index briefly broke above the psychologically important 1,800-point level.

On the Hochiminh Stock Exchange (HoSE), the VN-Index closed up 2.63 points at 1,791.41 points. The benchmark had rallied strongly in morning trading, surpassing 1,800 points and reaching an intraday high of 1,812 points.

Market breadth was negative as the number of decliners surpassed gainers by 225 to 93.

Liquidity, however, remained relatively strong. More than 839.7 million shares changed hands, with trading value reaching VNĐ21.38 trillion (US$818.3 million). Volume declined nearly 5 per cent from the previous session, but turnover increased by more than 10 per cent.

VIC remained the key pillar supporting the benchmark. The stock advanced 2.8 per cent, the strongest gain in the VN30 basket, and contributed more than 10 points to the VN-Index. Without the support from VIC, selling pressure across many other large-cap stocks would have had a considerably greater impact on the benchmark.

Despite the VN-Index remaining in positive territory, the VN30-Index reversed course to fall 5.85 points.

Only nine of the 30 constituents finished higher, while 19 declined. Apart from VIC, Southeast Asia Commercial (SSB) rose 2.26 per cent, while Masan Consumer Corporation (MCH) and LPBank (LPB) gained more than 1 per cent each. The remaining advancing stocks recorded relatively modest increases.

On the downside, selling pressure was more pronounced. Petrovietnam Refining and Petrochemical Corporation

(BSR) and steelmaker Hoa Phat Group (HPG) both lost more than 2 per cent, while another five large-cap stocks fell by more than 1 per cent.

The HNX-Index on the Hanoi Stock Exchange (HNX) extended losses to the second day, down 0.54 points to 282.65 points. 

Foreign investors, meanwhile, provided some support to the market, recording their third consecutive session of net buying.

They posted net purchases of over VNĐ314 billion on the two bourses. VIC was the biggest target of foreign buying, with net purchases reaching more than VNĐ362 billion.

According to analysts, the improvement in cash flow remains a supportive factor, but the market's reaction around 1,800 points will be important in determining whether buying demand can absorb rising profit-taking pressure.

The narrowing of gains in afternoon trading showed that the 1,800-point threshold remains a significant resistance level as the VN-Index attempts to extend its recent recovery. 

Bizhub