Late buying sends market up
By Phuong Thao - The Saigon Times Daily
HCMC – Despite losses in early trade, the stock market staged a rebound on Thursday given surging demand in the last 30 minutes of trading, putting an end to a three-day fall. The VN-Index gained 3.1 points, or 0.75%, from the session earlier to close at 413.83.
The market opened just in the black but then dropped back to hit a low of 408.43 before rebounding to where it started by the end of the morning session. In the afternoon, trading saw a move to the upside and then a strong finish at the highs.
Liquidity improved but was still low compared to the three-week average of VND800 billion and over VND1 trillion per day a month earlier. On the Hochiminh Stock Exchange (HOSE), trading increased by 14% in volume and 30.7% in value to 31.5 million shares worth VND463.8 billion.
Advancers outnumbered laggards by more than two-fold with 38 tickers hitting limit-up. Heavyweights VCB, BVH and SSI together contributed 1.38 points to the index.
The VN30 Index jumped 3.4 points, or 0.7%, to end the day at 488.82 with 20 stocks going up and only two tickers in the red.
Tan Tao Investment Industry Corporation (ITA) was the most actively traded stock in terms of volume with over 1.5 million shares traded while Saigon Securities Inc. (SSI) took the lead in terms of value with VND27.8 billion.
Foreigners were hardly participants although they were net buyers with a marginal amount, accounting for 6.2% and 5% of the market’s buying and selling value respectively.
On the Hanoi market, the HNX-Index surged 1.73 points, or 2.54%, against the previous day to close at 69.81. Liquidity jumped 57% in volume and 49% in value to 39.3 million shares worth VND336 billion, of which around 890,000 ACB shares worth VND24.3 billion were traded via put-through transactions.
Winners overwhelmed losers by three-fold, of which 87 stocks went limit-up. VND continued to take the lead for both volume and value with nearly 6.4 million shares worth VND60.6 billion changing hands.
Viet Capital Securities Company said investor confidence improved somewhat, helping to increase liquidity on Thursday when the Government confirmed the nation’s foreign reserves reached US$19 billion, a big improvement compared to the 2011 year-end balance of US$9 billion and assured an aggressive plan to spur growth in the second half of the year.
HCMC Securities Corp. (HSC) forecast there might be more active buying on HOSE Friday but the key test would be how much follow-up buying on the Hanoi exchange.
“We must admit the market did look a bit oversold from a technical standpoint in recent days and was at the upper end of our buying range as of Wednesday. The HNX30 Index, which will be applied from early next week, is like the VN30 Index before it, which is a perfect excuse to buy stocks for a day or two but so far has had little lasting impact on market buying trends.” HSC said.