Shares bounce back but liquidity declines to November-low

A motorist buys fuel at a Petrolimex station in Hà Nội. Petrolimex (PLX) was up 5.6 per cent Wendesday. VNA/VNS Photo

 HÀ NỘI — Shares bounced back on the Hồ Chí Minh Stock Exchange on Wednesday, but liquidity declined, showing investor caution about speculative factors after a month of increasing.

The VN-Index recouped Tuesday’s loss, gaining 0.64 per cent to close at 1,475.85 points. The southern bourse’s index decreased 0.69 per cent in the previous session.

Growth of heavyweight stocks lifted the market with big gainers including Vingroup (VIC), up 1.6 per cent; Petrolimex (PLX), up 5.6 per cent; lender BIDV (BID), up 1.9 per cent; Vietcombank (VCB), up 0.8 per cent; and Investment and Industrial Development Corp (BCM), up 4.6 per cent. They were also the top five stocks affecting the VN-Index the most.

However, steel companies underperformed. The two largest steelmakers – Hòa Phát Group (HPG) and Hoa Sen Group (HSG) – fell more than 1 per cent each. Mid-sized companies such as Nam Kim Steel (NKG), Pomina Steel (POM) and SMC Trading Investment (SMC) dropped between 1 per cent and 2.7 per cent.

Liquidity declined with nearly 861 million shares traded worth VNĐ26.1 trillion (US$1.13 billion), the lowest level in November.

“The cash flow is shifting from stocks that have rocketed to stocks that have not recorded significant increases. Power, retail and construction materials sectors are notable groups in the coming sessions,” Trần Xuân Bách, a stock analyst at Bảo Việt Securities Co, said in a company report.

Investors could still make use of sessions in which the Index corrects to below 1,470 points to carry out trading activities with stocks that are accumulating, creating a good price base or ones that have not had significant increases, Bách suggested.

On the Hà Nội Stock Exchange, the HNX-Index maintained its uptrend, rising 2.37 per cent to end the session at 462.95 points. The northern bourse’s index has gained 30 per cent since early October.

Liquidty declined here, however, with just 149 million shares worth VNĐ4 trillion traded, down 23 per cent in volume and 13 per cent in value compared to Tuesday’s levels.

Foreign traders turned to be net sellers on both exchanges, offloading shares worth total net sell value of VNĐ222 billion. Their sales focused on VPBank (VPB) and Hòa Phát Group (HPG) with net value of VNĐ112 billion and VNĐ107 billion, respectively.

According to analysts at Viet Dragon Securities Co (VDSC), if the VN-Index can absorb profit-taking pressure and regain, the index’s status will be in a positive zone.

“Therefore, investors should slow down and assess the market movement,” said Bảo Nguyễn, VDSC’s stock analyst, said in the company’s report. — VNS