Market rebounds to 350 points
By Phuong Thao - The Saigon Times Daily
HCMC – After four losing sessions in a row, the local market bounced back with liquidity staying high on Wednesday as stocks of most securities brokers hit their ceiling prices, lifting the VN-Index up 2.86 points, or 0.82%, against the previous day to close at 350.66.
The market opened just into the black and subsequently moved slightly higher to hit a daily high of 351.46 before falling back but always in a narrow range and finally closed just above the lows.
Liquidity on the southern bourse was almost unchanged compared to the previous session with 57.7 million shares worth VND838 billion changing hands.
Advancers tripled decliners in numbers by 180 to 63. Most blue-chips gained in value, with CTG, VCB, SSI and HAG hitting their daily limit of 5% while others increased between 0.6 and 4.4%.
Ocean Group Co. (OGC) was the most actively traded stock, rising 4.1% against the previous day to VND7,600 per share on the volume of 1.8 million shares, followed by Nari Hamico Minerals Co. (KSS), which moved sideways at VND7,000 with 1.7 million shares changing hands.
Foreigners were strong net sellers again as they kept offloading STB shares. They bought 2.5 million shares worth VND57 billion and offloaded 6.3 million shares worth VND105 billion, making up 6.8% and 12.5% of the market’s buying and selling value respectively.
The Hanoi market also strongly rebounded although turnover dropped back to VND248 billion, with the HNX-Index gaining 1.45 points, or 2.56%, from the day earlier to close at 58.15.
Rising stocks far outnumbered falling ones at 171 to 65. Foreigners were net buyers as they accounted for 1.5% and 0.7% of the market’s buying and selling value respectively.
Viet Capital Securities Co. said in any case, there are more and more signs that the market is about to bottom out over the next couple of days.
“As we have mentioned over the last two days, we do believe that we are close to a medium-term turnaround as well as that we feel there are just too many pessimists out there. We therefore moved our medium-term rating from down to neutral,” it said in a report.
“We recommend risk oriented investors to buy KLS as the stock formed a possible Bullish Engulfing pattern pn Thursday, which also occurred on May 25 around the same level. The stock then rallied about 40% in about two weeks. We think that history at this time will repeat itself,” the broker said.