Shares end higher on cash flow injection

Wednesday, Sep 06, 2023 16:03

A worker carries out technical checks at a steel factory of Hòa Phát Group (HPG). HPG rose 4.3 per cent on Wednesday. — Photo courtesy of Hòa Phát Group

Vietnamese markets ended Wednesday higher as the injection of cash flow supported the market and outweighed the sell-off pressure.

The benchmark VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) rose 0.85 per cent, to close the day at 1,245.50 points.

The breadth of the market was in positive territory, with 356 stocks up and 145 trading lower.

During the session, investors poured more than VNĐ25.2 trillion (US$1 million) into the southern market, equivalent to a trading volume of 1.1 billion shares.

The VN30-Index also closed higher at 1,260.03 points, up 1.24 per cent. Twenty-two stocks of the VN30 basket climbed, while four went down.

The VN-30 group performed positively and bolstered the market.

The best performers in the VN30 group were Vietinbank (CTG), PetroVietnam Gas JSC (GAS), Hòa Phát Group (HPG), Khang Điền House (KDH), Masan Group (MSN), Military Bank (MBB), Bank for Investment and Development of Vietnam (BID), Vietjet (VJC) and Vincom Retail (VRE).

Stocks across all sectors bounced back as investors' risk appetite returned, with bank stocks still the most attractive investments.

In the basket, banking stocks gained significantly, including Military Bank (MBB), Saigon-Hanoi Commercial JS Bank (SHB), Vietcombank (VCB), VietinBank (CTG), Tiên Phong Bank (TPB) and Vietinbank (CTG).

However, BIDV (BID), the only loser in the banking group, was still hit by selling forces, down 0.4 per cent.

“The market continued to extend the recovery span and penetrated deeper into the previous distribution area,” said Việt Dragon Securities Co.

“Liquidity increased with a relatively narrow range in the session, showing that the supply increased to take profit when the market rallied. It is expected that the supply will rise in the near future as the market is near the old peak, leading to a slower recovery rate.

“The market is likely to have a period of exploration of supply and demand when facing the old peak, thus the divergence will tend to increase in the coming time.

“Therefore, investors still need to observe supply and demand movements and assess the market state. Temporarily it is still advisable to consider the possibility of the market's recovery to take profits or reduce the weight for stocks that have increased rapidly to the resistance zone or are showing signs of weakening from the resistance zone,” the company said.

On the Hà Nội Stock Exchange (HNX), the HNX-Index closed the trading day at 255.36 points, up 1.22 per cent.

Some 105.7 million shares were traded on the northern exchange, worth VNĐ2 trillion. — VNS

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