Market experiences ups and downs with low liquidity

Wednesday, Jan 11, 2023 17:21

Vincom Mega Mall in Long Bien District, Ha Noi. Vinhomes shares (VHM) rose 2 per cent on Wednesday, topping the shares lifting the VN-Index most. — VNS Photo Mai Huong

The market demonstrated volatility with ups and downs since early this week. The benchmark VN-Index rebounded 0.23 per cent to close Wednesday at 1,055.76 points after a brief decrease on Tuesday.

Liquidity remained at low level of less than VND10 trillion this week. More than 545 million shares worth VND8.9 trillion (US$377 million) were traded on the Ho Chi Minh Stock Exchange (HoSE).

“The market continued struggling in the range of 1,050-1,065 with low liquidity. After touching the threshold of 1,065 in the morning, the market turned around and closed at 1,055.76, a slight increase of two points compared to yesterday,” a report by BIDV Securities Co (BSC) said.

The rising momentum slowed down in the latter half of the day. The market breadth was positive with 255 stocks rising and 155 falling but still weakened compared to 270 rising stocks and 99 declining in the morning.

Statistics on HoSE showed 205 stocks were driven down from their peak of the day by 1 per cent or more in the afternoon, of which half were down by 2 per cent or more. Under heavy selling pressure, half retreated below the reference thread.

Among blue chips, Vietcombank (VCB) lost 2.52 per cent and Vinamilk (VNM) decreased 2 per cent, being the two shares dragging the VN-Index most.

On the other end of the spectrum, Vinhomes (VHM), brewer Sabeco (SAB) and Vietinbank were among the top three lifting the Index most, up between 2-2.8 per cent each.

According to BSC's analysts, in the next trading sessions until the end of the Lunar Year, the market will not see too strong fluctuations.

On the Ha Noi Stock Exchange, the HNX-Index climbed for a second day this week, gaining 0.49 per cent to end at 211.67 points.

Liquidity increased slightly to nearly 62 million shares worth VND901 billion.

“The market kept falling as a result of the pressure from the resistance zone and the deteriorating money flow. As VN-Index was able to bounce back from 1,045 points, the fall was actually pretty slight. At the same time, there was just a small amount of selling pressure when the market started to rebound,” Phuong Nguyen, a market analyst at Viet Dragon Securities Co, wrote in a note.

Phuong pointed to the pressure as a resistance in the range of 1,065 points for the VN-Index and predicted the market is able to recover, but advised investors should watch for changes in supply and demand in the resistance zone to reassess the market's situation. — VNS

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