HCMC – After moving sideways in two sessions, the local market staged a sharp rally on Wednesday as investor sentiment was buoyed by imminent lending rate cuts and visible positive information on the monetary market. The VN-Index jumped 7.83 points, or 1.8%, from a day earlier to 443.99.
Market rallies above 440 points
By Phuong Thao - The Saigon Times Daily
HCMC – After moving sideways in two sessions, the local market staged a sharp rally on Wednesday as investor sentiment was buoyed by imminent lending rate cuts and visible positive information on the monetary market. The VN-Index jumped 7.83 points, or 1.8%, from a day earlier to 443.99.
The market started in the back and quickly gained over eight points after the first matching phase before seesawing its way towards the close.
Liquidity remained high on the southern bourse with volume rising 6.7% to 44.3 million shares while the value was almost unchanged from the previous day at VND704 billion.
Advancers outnumbered decliners at the 5:1 ratio, with 208 stocks closing higher and only 41 stocks losing. BVH was once again the biggest contributor to yesterday’s move, followed by other supporters like VNM, VPL and HAG.
Licogi 16 Co. (LCG) topped the market in terms of liquidity, adding 4.3% from the session earlier to VND14,500 per share with 4.4 million shares changing hands, followed by Saigon Securities Inc. (SSI), which surged 4.9% to VND21,100 with 2.6 million shares traded.
Foreigners were net buyers in terms of value as they bought 3.3 million shares worth VND110 billion and offloaded 4.4 million shares worth VND107 billion. They accounted for 15.6% and 15.3% of the market’s buying and selling value respectively.
The Hanoi market bounced back strongly with the trade value jumping 25% to over VND697 billion. The HNX-Index soared 2.98 points, or 4.04%, against the previous session and ended the day at 76.75.
Market breath was positive with 240 stocks closing higher while 57 stocks declined, including 50 stocks shooting up to the ceiling prices and 16 stocks dropping to the floor prices. Foreigners increased net selling, accounting for 2% and 3.7% of the market’s buying and selling value respectively.
HCMC Securities Corp. (HSC) said although it could see frequent but mild profit taking, the strength of yesterday’s move clearly indicated that investor psychology had made the turn.
“There is still very little differentiation in performance of the various sectors, although interest rate sensitive and high beta sectors are now clearly leading the way. Technically, it also looks very solid and we haven’t even had the mid-term trend reversal signal yet,” HSC said in its report on Wednesday.
“Although daily moves like we saw today confirm the short-term bullishness, we are still far from an overall recognition that the bear market is indeed finished. This so-called ‘wall of worries’ is likely to persist for some time and until stock prices and thus the averages have reached significantly higher levels. We should expected mild corrections from time to time, but the road is clear (for sharp corrections) until the average investor is convinced that higher prices are a certainty.”