Shares extend gains but liquidity stays low

Wednesday, Nov 22, 2023 07:00

BIDV's employees talk to clients at one of its transaction offices. The lender's shares jumped nearly 1.9 per cent on Tuesday, helping lift the market's uptrend. — Photo courtesy of the bank

The Vietnamese stock market rose on Tuesday for the second straight day, but liquidity continued to decline while foreign investors withdrew from the main southern bourse.

The market’s benchmark VN-Index extended its rallies to finish higher at 1,110.46 points, an increase of 6.8 points, or 0.62 per cent.

The breadth of the southern market was positive as the number of gainers surpassed that of losers. In particular, 217 stocks ended up, while 91 inched lower.

However, liquidity remained at low levels as the trading value on HoSE fell 7.4 per cent from the previous session to nearly VNĐ15 trillion (US$616.6 million), which was equivalent to a trading volume of more than 712.6 million shares.

The VN30-Index, which tracks the 30 biggest stocks on HoSE, also increased 5.75 points, or 0.52 per cent, to close Tuesday at 1,108.6 points.

Twenty-two stocks in the VN30 basket inched higher, while five dropped and three stayed flat.

The index’s bullish trend was backed by rallies in most industries. Of which, the oil and gas industry saw the biggest gain. It was followed by the construction group, with Hoà Bình Construction Group JSC (HBC) hitting the maximum daily gain of 7 per cent, Coteccons Construction JSC (CTD) soaring nearly 5.3 per cent and Viettel Construction (CTR) up 3.77 per cent.

Meanwhile, stocks of the banking sector mainly traded in a tight range of under 1 per cent, except for BIDV (BID) which was up 1.85 per cent and Liên Việt Post Bank (LPB) climbed 1.63 per cent.

Analysts from Saigon - Hanoi Securities JSC (SHS) said that the market would need more time to form an equilibrium area for the accumulation process.

“We expect an accumulation base to form above 1,100 point-level. In the short-term, if the positive recovery trend is maintained, we expect the new balance area for accumulation to likely be in the area of 1,100 -1,150 points,” SHS said, noting that the recovery is technical as the VN-Index has lost its uptrend while the strong correction is likely to boost the uptrend’s momentum but not sustainable.

On the Hà Nội Stock Exchange (HNX), the HNX-Index also increased for two days in a row. It was up 2.03 points, or 0.89 per cent, to 229.8 points.

More than 98.6 million shares were traded on the northern bourse, worth nearly VNĐ2.1 trillion.

Limiting the rallies, foreign investors ran away from the market as they net sold nearly VNĐ568 billion on HoSE. However, they still net bought a small amount of VNĐ7 billion on HNX. — VNS

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