Market rebounds as liquidity hits 45-week low
Shares on the HoSE managed to recover on Thursday, snapping a three-day decline, even though trading liquidity dropped to its lowest point in 45 weeks.
Shares on the Hồ Chí Minh Stock Exchange (HoSE) edged higher on Thursday, ending a three-day losing streak, despite liquidity falling to its lowest level since late October last year.
On the Hồ Chí Minh Stock Exchange, the benchmark VN-Index rose by 3.08 points, or 0.25 per cent, to 1,256.35 points.
The market's breadth was positive, with 167 gainers outnumbering 130 losers. Liquidity on the southern bourse dropped by 18.47 per cent to VNĐ10.5 trillion (US$428.92 million), equivalent to a trading volume of 433.6 million shares.
The VN30-Index, tracking the 30 largest stocks by market capitalisation on the HoSE, increased by 3.73 points, or 0.29 per cent, to finish at 1,297.61 points. In the VN30 basket, 17 stocks advanced, nine declined and four remained flat.
Data compiled by the financial website vietstock.vn showed that the Bank for Foreign Trade of Việt Nam (VCB) was the biggest gainer in terms of market capitalisation. Shares of the lender rose by over 1.24 per cent, contributing more than 1.5 points to the VN-Index.
The Vietnam Prosperity Joint Stock Commercial Bank (VPB) followed with shares rising by 1.37 per cent, Vietnam Rubber Group - Joint Stock Company (GVR) gaining 1.32 per cent and FPT Corporation (FPT) increasing by 1.3 per cent.
However, some stocks still faced slight sell-offs. Southeast Asia Commercial Joint Stock Bank (SSB) was the biggest loser on Thursday, with shares dropping by 5.94 per cent, contributing to a decrease of more than 0.6 point in the VN-Index.
According to analysts from Viet Dragon Securities: "The reduction in liquidity compared to the previous session indicates cooling supply after the market's significant drop. The current support signals may lead to a short-term recovery in the market. It is expected that the market will test supply again in the 1,265 – 1,270 point range, the MA(20) region. Therefore, investors can expect a short-term recovery and should prioritise stocks with stable performance and strong inflows in recent times. However, it is advisable to consider using this recovery period to take short-term profits or restructure portfolios to reduce risk."
On the Hà Nội Stock Exchange (HNX), the index also ended higher on Thursday, rising by 0.19 per cent to 231.9 points.
During the session, more than VNĐ947 billion worth of shares were traded, equivalent to a trading volume of over 47 million shares.
In the afternoon session on Thursday, foreign investors returned to their selling trend, recording a net sale of VNĐ188 billion on the exchange. — VNS
