Stocks rebound as cash flow surges into large-cap shares

Wednesday, Apr 03, 2024 06:51

Facilities of PetroVietnam Power Corporation (POW). POW gained 1.8 per cent yesterday. VNA/VNS Photo

The stock market witnessed a recovery as a substantial influx of cash was directed towards large-cap stocks, resulting in a notable rise in the indices.

The VN-Index on the Hồ Chí Minh Stock Exchange rose 0.43 per cent to close at 1,287.04 points. It had dropped 0.2 per cent to close Monday at 1,281.52 points.

Nearly 1 billion shares were traded on the southern bourse, worth VNĐ27.5 trillion (US$1.1 billion).

According to news site, Tuesday saw a remarkable resurgence in the stock market, with shares experiencing a significant rebound. The primary catalyst behind this upward trajectory was a substantial influx of cash flow, as investors poured their capital into large-cap stocks. This surge in buying activity exerted upward pressure on the indices, leading to a notable increase in their values.

Among gainers were PetroVietnam Power Corporation (POW), Masan Group (MSN), Mobile World Group (MWG), PetroVietnam Gas JSC (GAS), FPT Corporation (FPT), Vinamilk (VNM), Hòa Phát Group (HPG) and Military Bank (MBB).

The surge in the indices reflected the overall strength and performance of the stock market. As the large-cap stocks received substantial investments, their positive momentum resonated throughout the market, driving the indices upward.

The large-cap VN30-Index lost 0.02 per cent to stand at 1,292.30 points.

In the VN30 basket, 15 of the 30 largest stocks by market value and trading liquidity increased while 13 declined.

Some individual large-caps still lost ground, lessening indices’ rallies, such as Vietcombank (VCB), PetroVietnam Power Corporation (POW) and Vincom Retail (VRE).

There is a possibility that the market will continue to probe supply and demand in the 1,275 - 1,290-point range in the near future before more specific signals emerge. Therefore, investors need to slow down and observe the supply and demand situation in the probing area to assess the market condition, said Việt Dragon Securities Co.

"Currently, it is advisable to prioritise stocks with good signals from the support zone to hold, however, it is necessary to consider profit-taking for stocks that are facing difficulties at the resistance zone to prevent the risk of market weakening."

On the Hà Nội Stock Exchange, the HNX-Index increased 1.24 per cent to end Tuesday at 245.90 points.

More than 121 million shares were traded on the northern market, worth VNĐ2.7 trillion. — VNS

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