Stocks rebound over global fears

Wednesday, Oct 17, 2018 07:50

Investors at Saigon Securities Inc’s trading house in Ha Noi. – VNS Truong Vi

Vietnamese shares rebounded on Tuesday but the market’s short term outlook remains gloomy over concerns about the global equity markets.

The benchmark VN Index on the HCM Stock Exchange gained 1.23 per cent to close at 963.37 points.

The southern market index dropped 1.13 per cent on Monday.

The HNX Index on the Ha Noi Stock Exchange was up 0.86 per cent to end at 108.60 points.

The northern market index recovered from a 0.94 per cent fall made in the first trading session of the week.

More than 190.4 million shares were traded on the two local exchanges, worth VND4.36 trillion (US$194 million).

Foreign investors were net sellers, recording VND63 billion in net sell value. They were net buyers on Monday with a net purchase value of VND73.7 billion.

The stock market was driven by blue chips, which pushed the large-cap VN30 Index up 1.17 per cent to 939.41 points at the end of the day.

In the large-cap index, 24 of the 30 largest stocks by market capitalisation advanced while only five declined.

By sector, banks, real estate firms and petroleum companies were the main driving factors of the stock market.

The three industry indices grew by 1.3 per cent, 2.7 per cent and 2.5 per cent, respectively, data on showed.

Gainers in those three sectors included Sacombank (STB), Novaland (NVL), Vingroup (VIC), MBBank (MBB), Vietinbank (CTG) and PetroVietnam Gas (GAS) with growth rates ranging from 1.6 per cent to 5 per cent.

According to Sai Gon-Ha Noi Securities JSC (SHS), the market recovery was doubtful as the market trading liquidity was still low.

“The recovery came on less selling and the stocks that had been bargain-hunted last Thursday did not have any pressure on the market sentiment,” SHS said in its daily report.

“Investors seem to hold on their assets now and wait for further developments of the global stocks, given the rebound of Asia stocks and a slight decline of US stocks on Monday night.”

Therefore, SHS forecasts the stock market would be unpredictable on Wednesday because the trading would depend much on the global stocks while the stocks that had been purchased last Friday would arrive at investors’ accounts.

“New-arrival stocks would definitely increase the supply for the market and investor confidence would struggle pretty much on Wednesday,” SHS said. – VNS

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