Shares recover on improved liquidity

Wednesday, Oct 02, 2019 07:09

Transactions at Vietcombank in Ha Noi. Vietcombank (VCB) rose 1.58 per cent on Tuesday, supporting indices. — Photo

Shares recovered on Tuesday on improved liquidity as cash flow came back to support large-cap stocks.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange rose 0.3 per cent to close at 999.59 points.

The VN-Index fell 0.13 per cent on Monday.

More than 210 million shares were traded on the southern bourse, worth VND6.3 trillion (US$269 million).

Large-cap stocks were the main factor that drove the market up, with the large-cap VN30-Index gaining 0.37 per cent to hit 926.31 points.

Boosting the large-cap basket index were Vietcombank (VCB) (+1.6 per cent), Bank for Investment and Development (BID) (+1.5 per cent), Techcombank (TCB) (+1.7 per cent), VPBank (VPB) (+1.4 per cent), Mobile World Group (MWG) (+1.1 per cent), Bao Viet Holdings (BVH) (+1,2 per cent), Vietinbank (CTG) (+0.7 per cent), Masan Group (MSN) (+0.4 per cent), Vingroup (VIC) (+0.1 per cent) and Viet Nam National Petroleum Group (PLX) (+0.2 per cent).

Securities stocks attracted cash flow and made gains, such as Saigon Securities Incorporation (SSI) (+0.7 per cent), HCM City Securities Corporation (HCM) (+1.9 per cent), Sai Gon-Ha Noi Securities JSC (SHS) (+2.4 per cent) and Bao Viet Securities Company (BVS) (+1.8 per cent)

On a basis sector, insurance, real estate, securities, banking, wholesale, information and technology, agriculture, seafood processing, construction, construction material and retail were the gaining sectors on Tuesday, data on showed.

On the Ha Noi Stock Exchange, the HNX-Index was up 0.76 per cent to end at 105.85 points.

The northern market index rose 0.27 per cent on Monday.

Nearly 33 million shares were traded on the northern market, worth VND605.3 billion.

According to Bao Viet Securities Company (BVSC), the market is forecast to head toward the resistance zone of 1,000-1,005 points next session, where previously the index reversed direction to decrease with strong selling pressure.

“However, we expect that the market will soon break this resistance zone and head toward stronger resistance. In a positive scenario, we forecast that the index will successfully break this resistance zone in several sessions and approach 1,014-1,024 points. In this zone, correction pressure may possibly push the market back to 1,000 points,” BVSC said in its daily report.

Listed companies are expected to disclose Q3 estimated profit in October. Sectors expecting positive profit in this quarter include banks, retail sales, real estate, electricity, natural rubber, and tyre rubber.

According to BVSC, stock exposure should be maintained at 45-50 per cent of the portfolio.

Investors with high stock exposure should lower stock exposure to a safe ratio during market rallies. If the market can break the resistance zone of 1,000-1,005 points, investors may cover previously sold positions or open new buying positions to raise stock exposure during market corrections. — VNS

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