Cash flow pushes shares up

Tuesday, Mar 19, 2019 07:39

Investors watch stock indices at Bao Viet Securities Company’s trading floor in Ha Noi. — VNS Photo Viet Thanh

The markets had a good start on Monday, witnessed exciting movements among large stocks with cash pouring into most sectors.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange climbed 0.77 per cent to close at 1,011.86 points.

The southern market index climbed 1.91 per cent last week to end at 1,004.12 points on Friday.

More than 230.5 million shares were exchanged on the southern bourse, worth VND5.35 trillion (US$229 million).

Large-cap stocks performed well, boosting the blue-chip VN30 Index up 0.61 per cent to 932.75 points.

Seven-teen of the 30 largest stocks by market capitalisation ended in positive territory while 10 slumped. The rest three were flat.

Bank stocks increased by 1.54 per cent, led by the increase in VPB (3.2 per cent), CTG (3.1 per cent), and VCB (2.4 per cent).

Oil and gas stocks went up 1.69 per cent as its large-cap stocks, including PetroVietnam Gas JSC (GAS), Viet Nam National Petroleum Group (PLX), PetroVietnam Drilling & Well Services Corporation (PVD) and PetroVietnam Technical Services Corporation (PVS), all increased.

Vingroup stocks, including Vingroup (VIC), Vinhomes (VHM) and Vincom Retail (VRE), gained across all boards, together with Dat Xanh Group JSC (DXG), Ha Do Group Joint Stock Company (HDG) and Thu Duc Housing Development Corporation (TDH), raising real estate stocks by 1.37 per cent.

On the Ha Noi Stock Exchange, the HNX-Index gained 0.40 per cent to end at 110.88 points.

The northern market index gained 2.05 per cent last week to finish Friday at 110.44 points.

More than 48.2 million shares were traded on the northern bourse, worth VND692 billion.

Foreign investors today sold a net of VND79.27 billion on HOSE, focusing on dairy firm Vinamilk (VNM) (VND65.77 billion), Bank for Investment and Development (BID) (VND48.03 billion) and Real estate developer NBB Investment Co (NBB) (VND30.25 billion). In addition, they sold a net of VND14.73 billion on the HNX.

According to BIDV Securities Company (BSC), the Vietnamese and regional markets had a slight increase in the context of waiting for positive information of the US-China trade negotiations after the news that the US and China achieved many specific steps on trade agreements.

“Investors may consider opening short-term position in some good fundamental stocks when the market continues to maintain the cumulative trend at 1,000 points,” BSC said.

In the next session, the market is expected to follow its uptrend and reach 1,020-1,025 zone shortly. The market’s uptrend may possibly have a gentle slope with a wide divergence among stock groups. Foreign investors maintain their net buy in E1VFVN30 regularly, said Bao Viet Securities Company (BVSC) in its daily report.

“This would support the market’s psychology and reinforce its uptrend in the short run,” BVSC said.

“Bank stocks are expected to continue its uptrend and support and drive the market. Capital flows are forecast to direct their interest toward oil and gas and real estate this week.”

Stock exposure should be limited at 50 per cent of the portfolio. Investors should either hold off on buying new positions or consider carefully and only buy in market’s correction, the company said. — VNS

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