Market recoups losses on bottom-fishing

Wednesday, May 11, 2022 07:04

Customers at a branch of Vietcombank. The bank's shares recovered from recent losses and led the market's uptrend yesterday. — Photo

The stock market finished higher on Tuesday, ending a two-day fall, as bottom-fishing activities lifted large-cap stocks.

The VN-Index on the Ho Chi Minh Stock Exchange (HoSE) surged 23.94 points, or 1.89 per cent, to 1,293.56 points, recouping some losses in the previous sessions. The benchmark declined by more than 90 points in the last two sessions.

The market's breadth was positive as 280 stocks increased, of which 23 stocks hit ceiling prices, while 168 stocks slid. However, liquidity was still lower than Monday's trade, with nearly 546.3 million shares traded on HoSE, worth over VND14.3 trillion (US$626.1 million).

The index's reversal was thanks to recoveries of many pillar stocks as investors took advantage of a big sell-off recently to seek bargains in good fundamental stocks.

The VN30-Index, which tracks the 30 biggest stocks on the southern market, gained 31.42 points, or 2.39 per cent, to 1,345.46 points. Twenty-eight of the 30 biggest stocks in the VN30 basket rebounded, while only two stocks closed lower.

Vietcombank (VCB) was the market's leader yesterday, up 2.7 per cent. Other big stocks supporting the rally trend were Vinhomes (VHM), BIDV (BID), VPBank (VPB), and PV Gas (GAS), up in a range of 2.79-4.72 per cent.

Realty stocks still attracted capital flows with many posting outstanding performance such as Becamex (BCM) hitting the biggest daily gain of 7 per cent, Vingroup (VIC) up 1.64 per cent, Development Investment Construction JSC (DIG) rose 5.16 per cent, and Phat Dat Real Estate Development JSC (PDR) up 4.38 per cent.

The trend was in line with Saigon-Hanoi Securities JSC (SHS)'s expectations. In a daily report to investors, the firm said that the downside risk may remain in Tuesday's morning trade, and the VN-Index is likely to recover if the bottom-fishing demand force at the support zone of 1,225 - 1,250 points is strong enough.

"For long-term investors, if the market corrects it is a chance to raise the proportion of good fundamental stocks with potential growth in their portfolios," SHS said.

Meanwhile, "short-term investors can refer to our stock watchlist."

On the Ha Noi Stock Exchange (HNX), the HNX-Index also bounced back from recent losses. It closed Tuesday at 330.02 points, up 6.63 points, or 2.05 per cent.

During the session, over VND1.26 trillion worth of shares, equivalent to a trading volume of nearly 64.6 million shares, was traded on HNX.

Foreign investors still poured money into the southern bourse as they net bought a value of VND714.7 billion, while net sold VND4.1 billion on HNX. VNS

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