Stocks ease early losses on buying-in for low-priced items

Thursday, Mar 05, 2020 06:38

An investor observes the market move on his laptop. Vietnamese shares offset early losses on Wednesday thanks to strong purchases for hard-hit stocks. — Photo

Vietnamese shares hobbled Wednesday as purchases for hard-hit stocks helped offset a prolonged foreign net selling amid fears of the slowdown of the global economy.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange inched down 0.14 per cent to end at 889.37 points, down from its intraday peak of 889.85 points.

The VN-Index had gained a total of 0.95 per cent in the previous two trading days.

More than 238.4 million shares were traded on Wednesday, worth nearly VND3.8 trillion (US$164 million).

Trading volume included more than 195.4 million shares being exchanged via order-matching transactions, worth VND2.65 trillion.

The VN-Index suffered a loss on Wednesday as US stocks declined Tuesday night and foreign investors kept pressurising local stocks with their net selling, according to VNDirect Securities Corporation (VNDS).

US stocks turned down after picking up on Tuesday night following an urgent interest rate cut by the Federal Reserve, which is expected to give hints to boost global economy.

Other central banks also performed rate cuts on Tuesday attempting to offset the impact of the COVID-19 coronavirus epidemic on their economies.

Foreign investors net-sold VND358 billion worth of Vietnamese shares on HoSE. They have sold a total net value of VND3.15 trillion in 17 straight days.

Domestic market sentiment was stable as investors were used to the volatility of global stocks in recent weeks, which encouraged them to buy local stocks when opportunities arose, VNDS said in its daily report.

The VN-Index fell as much as 0.87 per cent during the day to near 880 points and the short-term support zone triggered bargain hunting among investors.

The market breadth on HoSE was positive with 188 gainers and 166 decliners while 58 stocks remained unchanged.

The large-cap tracker VN30-Index ended flat while mid-cap and small-cap trackers were up nearly 0.6 per cent each.

Among the best-performing large-caps were FLC Faros Construction (ROS), Sacombank (STB), SSI Securities (SSI), HDBank (HDB) and aviation firm Vietjet (VJC).

The Vietnamese stock market was still being oppressed by the unpredictability of global stocks and prolonged foreign selling, VNDS said.

But investors on the local market were still calm, proven by the spread of cash into different groups of stocks to lift the market, the brokerage said.

The market was expected to move up and struggle between 880-900 points and any gains now may be short-lived, Sai Gon-Ha Noi Securities (SHS) said in a note.

It should be noted that investors were always willing to pick up stocks when the VN-Index neared 880 points, the company said.

On the Ha Noi Stock Exchange, the HNX-Index rose 1.29 per cent to end at 114.02 points.

The northern market index has advanced a total of 6.95 per cent in five straight days since last Thursday.

More than 91.5 million shares were traded on the northern bourse, worth VND1.03 trillion. — VNS

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