HCM City's shares recoup losses on new money flow

Saturday, Dec 19, 2020 07:12

Investors perform transactions on SSI's trading floor. SSI's shares hit the daily limit of 7 per cent growth yesterday.— VNA/VNS Photo Viet Thanh

HCM City’s shares recouped their loss on Friday when new money continued to flow in the market to seek profits.

Viet Nam’s benchmark VN-Index increased 1.49 per cent to close Friday at 1,067.46 points. HCM City’s index lost 1.43 per cent on Thursday.

The market breadth was positive with 302 stocks rising, 126 falling and 76 closing unchanged.

Cash kept flowing in the market, sustaining the liquidity at a high level with nearly 624 million shares worth VND13.24 trillion (US$571 million) traded on the Ho Chi Minh Stock Exchange.

Blue chips continued to be the market’s driving force as 25 of the top 30 largest shares by market value and liquidity gained value, of which 17 increased by more than 1 per cent. Only five closed flat and no one lost.

VPBank (VPB) and Saigon Securities Inc (SSI) were the biggest gainers, hitting the daily limit growth of 7 per cent on Friday.

Regarding industries, banking and finance also led the market. Vietcombank (VCB), Techcombank (TCB), Military Bank (MBB) and HDBank (HDB) rose between 3-4.5 per cent each.

However, analysts have warned of a possible correction in the future after a long rally.

“We note that the overbuying of stocks has spread. This may cause correction pressure on the market in some sessions,” Tran Xuan Bach, a stock analyst at Bao Viet Securities Co, said in a daily report.

The VN-Index has risen steadily since early November, gaining more than 12 per cent in just one month from 950 points on November 16 to 1,067 points on Friday. Liquidity also climbed strongly with daily trading volume reaching more than VND10 trillion in most of the sessions in the past month.

Bach reckoned the cash flow may shift into stocks which have yet to rise much to seek profits, predicting small- and mid-cap stocks are likely to flourish in the next few sessions.

On the Ha Noi Stock Exchange, the HNX-Index rallied 2.92 per cent to close at 177.02 points. This was its fourteenth gaining session in a row this month.

Liquidity was good when the trading value was maintained at more than VND1 trillion per session. Specifically, 507.5 million shares worth VND1.14 trillion were traded on the northern bourse on Friday.

Foreign traders were mixed, however. They turned to be net buyers on HCM City’s market, picking shares worth a net buy value of more than VND47 billion, but they were net sellers on Ha Noi’s bourse for a small value of VND580 million. — VNS

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