Index hits five-month high on strong demand
By Phuong Thao - The Saigon Times Daily
HCMC – The local market skyrocketed in the first extended session on Monday as almost all investors jumped into the buying side, sending the VN-Index up by a hefty 17.61 points, or 4.01%, against the previous session at 457.21, the highest in five months.
The market opened sharply higher and fluctuated in a very narrow range as sustained buying pressure prevented the seller from influencing trading before finally closing at the highs.
On the southern bourse, liquidity continued improving as value jumped 35% from last Friday to over VND1.9 trillion with 103 million shares changing hands.
Gainers overwhelmed the electronic board while only 14 stocks declined and seven others closed at the reference prices. VIC, VNM, BVH and STB made the biggest positive contribution to the VN-Index.
Eximbank (EIB) again led the market in terms of liquidity, adding 4.6% at VND20,400 per share with 8.1 million shares changing hands. Ocean Group Co. (OGC), the second most actively traded stock, shot up to the ceiling price of VND12,600 with 4.3 million shares traded.
Foreign investors were also active although they were net sellers due to a very large put-through deal in HAG. They took 5.7 million shares worth VND173 billion and offloaded 19.4 million shares worth VND542 billion, making up 8.7% and 27.3% of the market’s buying and selling value respectively.
Fiachra Mac Cana, managing director of HCMC Securities Corp., said that with a buying overhang, the market is likely to run up another day or two before pausing.
“Investors will no doubt be reminded of 2009 and perhaps the upside potential of the rally needs to be revisited. While long-term issues such as the effect on the government indebtedness should not be forgotten, this is not something the market will care much about for the time being. We are likely to continue to surge for some days at least and 500 points, and beyond that 550 points on the VN-Index now does not look that far away anymore,” he said.
The Hanoi market also saw an impressive rally on Monday although turnover dipped to VND479 billion, with the HNX-Index surging by 4.06 points, or 5.66%, from the session earlier to close at 75.78.
Gainers largely outnumbered losers by 347 to 20, including 236 stocks hitting the ceiling prices and eight stocks plunging to the floor prices. Foreigners accounted for 1.7% of the buying value and 5.7% of the selling value.