Shares rally despite ETF transactions

Saturday, Mar 17, 2018 07:40

Investors monitor share movements at a VNDirect Securities Co trading floor in Ha Noi. — VNA/VNS Photo Tuan Anh

Shares ended on a positive note on Friday thanks to a positive outlook among investors.

The benchmark VN Index on the HCM Stock Exchange (HOSE) increased 1 per cent to close at 1.150,19 points, for a five-day rise of 2.36 per cent.

According to BIDV Securities JSC (BSC), domestic buying demand absorbed most shares sold by foreign traders. As a result, the index recorded a week of rallying and surpassing its previous peak of 1,130. Thus, the index is expected to extend gains next week.

The HNX Index on Ha Noi Stock Exchange (HNX) rose 1.38 per cent to end at 133.10 points, expanding its five-day rally to 4.26 per cent.

More than 388.51 million shares, worth VND12.2 trillion (US$534 million), were traded on the two local bourses. BSC said liquidity surged thanks to the trade of the exchange-traded funds (ETFs).

Market breadth was positive with 252 gaining shares, 234 declining ones and 248 stocks ending flat.

The UPCoM Index on the Unlisted Public Company Market gained 0.35 per cent to stand at 61.80 points, a three-day increase of 0.88 per cent.

Foreign investors today were net sellers of VND1101.32 billion on HOSE, concentrated on steel producer Hoa Phat Group JSC (HPG) (VND248.4 billion), Vietcombank (VCB) (VND168.2 billion) and property developer Vingroup (VIC) (VND168.2 billion). In addition, they bought a net of VND8.57 billion on the HNX.

Friday was the final day for the two exchange-traded funds, FTSE ETF and the V.N.M ETF, to restructure their portfolios.

According to Viet Dragon Securities Co (VDSC), although Vincom Retail Joint Stock Company (VRE) was bought by both ETFs, the stock price stayed below its reference level.

Foreign investors bought 25.2 million VRE shares, but they also sold 21.3 million, VDSC said.

In addition to VRE, the FTSE Viet Nam ETF also bought Hoang Huy Investment Financial Services JSC (TCH) and Phat Dat Real Estate Development Joint Stock Company (PDR). Only TCH closed in the green. VRE and PDR declined by 1.5 per cent and 1.8 per cent, respectively.

After being removed from the FTSE ETF portfolio, GTN fell by 3.1 per cent. SAB closed near its ceiling up 6.8 per cent, following the news that Dragon Capital bought 15.3 million shares, equivalent to a 2.3 per cent stake of the giant beer company.

GAS, VNM, and banking stocks (BID, VCB and VPB) were among the top drivers for the VNIndex.

“Given the current high liquidity of the market, it is normal that impacts from ETF transactions were not so significant,” VDSC said in its daily report. “Considering the current strong inflows, we believe the VNIndex is on the right track to surpass its all-time high of 1,170 with banking, real estate and brokerage stocks continuing to be the leaders. The F&B sector is also well worth considering,” it added. — VNS

Comments (0)

Statistic