VN-Index bounces back but liquidity remains low

Friday, Feb 18, 2022 08:18

Transaction at BIDV's branch in Ha Noi. BIDV topped the banking shares positively affecting the VN-Index, up 1.9 per cent yesterday. — Photo

Shares bounced back on the Ho Chi Minh Stock Exchange yesterday with the VN-Index rising 1.06 per cent to close at 1,507.99 points. Liquidity remained low, however, raising concerns of a “bull-trap”.

The market breadth was positive with 279 shares rising, 152 declining and 81 closing flat.

Large caps, especially banking stocks, recovered substantially, pushing the market up.

Five of the top 10 shares contributing to the VN-Index’s growth most were banks. They included BIDV (BID), up 1.9 per cent; VPBank (VPB), up 1.8 per cent; Vietcombank (VCB), up 0.6 per cent; Techcombank (TCB), up 1.2 per cent; and Military Bank (MBB), up 1.7 per cent.

Other big lenders such as Vietinbank (CTG), TienPhongBank (TPB) and Ho Chi Minh Development Bank (HDB) also increased between 0.7 per cent and 1.9 per cent each.

Overall, 29 of the top 30 shares by market value and liquidity gained value, of which the biggest advancers included PV Gas (GAS) and Masan Group (MSN), each increasing by more than 3 per cent, and Vinamilk (VNM) and Hoa Phat Group (HPG), each rising by over 1 per cent. Only Bao Viet Holdings (BVH) was down 0.9 per cent.

Liquidity remained below the 20-day average, however. Nearly 616 million shares worth VND19.5 trillion (US$848 million) changed hands yesterday, down 12 per cent in volume and 3 per cent in value compared to the previous session.

According to analysts at Vietcombank Securities Co (VCBS), the current low-liquidity recovery may pose a "bull trap" risk – a classic case of a false breakout in which the prices of stocks rise above a resistance level, luring in more buyers but the price may tumble shortly after.

“Currently, VCBS sees the VN-Index shows a good support signal at 1,470 but overall, sellers are still dominating the market. Besides, many large-cap stocks started to show bearish correction signals for short-term accumulation after several consecutive gaining sessions,” they wrote in a note.

Meanwhile, analysts at reckoned as the world political situation shows signs of easing, which may be the driving force for the VN-Index to break out of the resistance zone of 1,500-1,510 points in the short term.

On the Ha Noi Stock Exchange, the HNX-Index rallied for a third session, up 0.26 per cent to end the session at 430.24 points. The northern market’s index gained 2.2 per cent in the last three sessions.

Liquidity declined here too, with just 68.6 million shares worth more than VND2 trillion being traded, down 18 per cent in volume and 15 per cent in value compared to Wednesday’s levels.

Foreign traders returned to be net buyers on both exchanges, disbursing a net value of VND785 billion worth of shares, of which their buys focused on the HCM City’s market with a net buy value of VND760.5 billion. — VNS


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