Market loses steam on heavy selling
By Phuong Thao - The Saigon Times Daily
HCMC – After two consecutive days of big gains, the winning streak on the local stock market seemed to run out of steam on Tuesday given heavy profit taking pressure while liquidity surged to a new high. Ending the day, the VN-Index gained a modest 1.76 points, or 0.36%, against the previous session to close at 488.07.
The market rose in early trade and dropped back to Monday’s closing levels before gaining again in two stages, which brought the index up to the daily high of 492.44. The afternoon trading then saw a sudden slump in which it erased most of the gains and finally closed just above the lows.
Liquidity soared on the southern exchange with 133 million shares worth VND2.2 trillion traded, up by 32% and 23% from the session earlier respectively.
Gainers outnumbered losers by 177 to 92, of which 98 stocks shot up to the ceiling prices and 26 others fell to the floor prices. High beta stocks were sold off, led by BVH, VND and PVF, while some laggard blue-chips such as PVD and DPM made handsome gains again.
Military Bank (MBB) was the most actively traded stock in terms of volume and value with 7.5 million shares traded worth VND118 billion. The VN30 Index rose 4.72 points, or 0.85%, to 557.02 with 13 advancers.
Foreign investors’ activity picked up. They were net buyers again, accounting for 9.1% and 6.9% of the market’s buying and selling value respectively.
The Hanoi market dipped on Tuesday while turnover increased to VND1.4 trillion. The HNX-Index lost 0.15 point, or 0.18%, against the previous session and ended the day at 83.64.
There were 183 stocks rising and 138 others declining, with 83 stocks hitting the ceiling prices and 26 stocks dropping to the floor prices. Foreigners accounted for around 3% of the buying value and 1% of the selling value.
HCMC Securities Corp. said the markets powered ahead at the beginning on Tuesday but then hit a wall of selling after lunch and high beta stocks in particular were sold heavily following several days of strong gains.
“We need to watch volumes carefully from now as there is some evidence that recent gains have taken place against a background of lower volumes suggesting that they are more vulnerable to profit-taking pressure in the near future. In general, while the index may see further gains in the days ahead, we may start running out of momentum over the next few weeks.”