Low-valuation buys revive stocks

Wednesday, Apr 24, 2013 11:47

HA NOI (VNS) — Investors increased their buying yesterday as prices of many shares became appealing after trending downwards.

The VN-Index on the HCM City Stock Exchange regained 1.12 per cent to close at 473.69 points by the end of yesterday's session. Advancers outnumbered decliners by 126-90.

Blue chips led the market uptrend, with two-thirds of the 30 largest shares by capitalisation and liquidity rose.

Vinamilk (VNM) was one of the biggest gainers, up 2.5 per cent, closely followed by Southern Rubber Industry (CSM), up 2.3 per cent; and Bao Viet Holdings (BVH), up 2.2 per cent.

The VN30 was up 0.87 per cent on 532.24 points.

"Investors are still cautious and they selected stocks with good fundamentals and low prices, focusing on blue chips on the back of a volatile market," Ha Noi-based independent analyst Nguyen Viet Hung said.

Both trading volume and value were slightly lower than Monday, totalling just 34 million shares, worth more than VND617.1 billion (US$29.4 million).

Shares of Tan Tao Investment Industry (ITA) was again the most active code with 3.3 million shares traded, up 5.4 per cent on a close of VND5,900 a share.

On the Ha Noi Stock Exchange, the HNX-Index also rose 1.06 per cent to finish yesterday's session at 58.22 points but the value of trades was still low at just VND164.3 billion ($7.8 million).

Property developer Sacomreal (SCR) and Sai Gon-Ha Noi Bank (SHB) were the most active shares here with each reporting 3.2 million shares exchanged. SCR climbed 4.9 per cent to VND6,400, SHB increased 3.2 per cent to VND6,500.

According to the technical analysis of Bao Viet Securities Co (BVSC), after some strong falling sessions, the two indices have come back to short-term support zone of 450-460 points for the VN-Index and 56-57 points for the HNX-Index.

"We think that share prices become more attractive for short-term trading activities and ‘bottom-fishing' demand is likely to be stronger in the coming sessions," BVSC's analyst Nguyen Xuan Binh wrote in a report.

"However, it will need more time for short-term bottom forming and share prices to fall further in order to conduct transations longer than T+3."

Trading by foreign investors continued to be modest. They finished as net sellers on the HCM City market, unloading shares worth VND8 billion ($381,000), but remained as net buyers on the Ha Noi exchange, picking up shares worth nearly VND9.2 billion ($438,000). — VNS



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