Shares extend gains on improved liquidity

Thursday, Mar 17, 2022 19:54

FLC Sam Son resort in Thanh Hoa Province. Part of investors sought to seek profits in mid caps such as FLC, pushing the share price to the ceiling. — Photo

Viet Nam’s benchmark VN-Index remained in positive territory on Thursday but divergence widened among blue chips while some investors sought to seek profits in small- and mid-cap shares.

On the Ho Chi Minh Stock Exchange, the VN-Index inched up 0.14 per cent to close at 1,461.34 points. The southern market’s index gained more than 1 per cent in the last three sessions.

The market breadth was positive with 240 shares rising, 189 falling and 81 closing flat.

However, blue chips were mixed. Of the top 30 largest shares by market value and liquidity, 12 advanced while 13 declined. The other five remained unchanged.

Banks were still the market drivers. Half of the 10 biggest contributors to the VN-Index were banking shares, of which BIDV (BID) was the biggest gainer with growth of 4.6 per cent, followed by Vietinbank (CTG), up 2.2 per cent. Vietcombank (VCB) sustained its uptrend but slowed growth to just 0.6 per cent on Thursday. The other two big gainers included Sai Gon-Ha Noi Bank (SHB) and Ho Chi Minh Development Bank (HDB) increasing 1.6 per cent and 1.3 per cent, respectively.

On the other end of the spectrum, Techcombank (TCB), Tien Phong Bank (TPB), VPBank (VPB) and Sacombank (STB) declined by less than 1 per cent each.

The dark side also included the biggest stocks such as PV Gas (GAS), Vinhomes (VHM), Hoa Phat Group (HPG), Vinamilk (VNM) and Masan Group.

Liquidity improved slightly, however, with 717.4 million shares worth VND21.4 trillion (US$931 million) being traded, up around 15 per cent in both volume and value over Wednesday’s levels.

According to analysts at Viet Dragon Securities JSC (VDSC), despite the VN-Index rising, the demand was not stronger as it could only help VN-Index move around the preference threshold.

“Perhaps the expiration of the derivative contract (VN30F2203) on March 17 has affected the trading sentiment of investors. It is expected that the VN-Index may continue to regain but need to be cautious of the pressure of the resistance zone of 1,470 points,” said Phuong Pham, VDSC’s analyst wrote in a note.

Meanwhile, many mid and small caps attracted investors, pushing share prices to the ceiling such as FLC Group (FLC), Hoang Quan Consulting-Trading-Service Real Estate (HQC), Ocean Group (OGC), Digiworld (DGW) and Yeah1 Group (YEG).

On the Ha Noi Stock Exchange, the HNX-Index closed unchanged compared to the previous day at 446.16 points. Liquidity also increased here with over 108 million shares worth VND2.7 trillion being exchanged, up 30 per cent in volume and 14 per cent in value over Wednesday.

Foreign traders stopped their 8-session net selling streak, picking up shares worth a buy value of VND134 billion. — VNS


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