ROS pulls VN-Index from two-day fall
Vietnam’s benchmark VN-Index struggled to rise on June 12, but market conditions remained poor as investors remained cautious ahead of the US Fed’s meeting.
An investor watches stock move on a tablet (Photo: VNA)Hanoi (VNA) - Vietnam’s benchmark VN-Index struggled to rise on June 12, but market conditions remained poor as investors remained cautious ahead of the US Fed’s meeting.
The key stock index on the HCM Stock Exchange inched up 0.18 percent to close at 751.09 points, a slight recovery from a two-day loss of 0.5 percent.
Market trading liquidity remained nearly unchanged compared to the previous two sessions with more than 184 million shares being traded, worth 3.72 trillion VND (165.6 million USD).
The market trading condition was negative with decliners outnumbering gainers by 153 to 114, and two-thirds of the 30 largest companies by market capitalisation suffering.
The southern market index was pulled up by some large-cap stocks, including FLC Faros Construction (ROS), brewer Sabeco (SAB), fuel dealer Petrolimex (PLX), two banks BIDV (BID) and Vietinbank (CTG) and PetroVietnam Gas (GAS).
Among those shares, ROS hit its daily trading limit of 6.9 percent after shares of FLC Faros Construction Group was added into the investment portfolio of V.N.M ETF, an exchange-traded fund under management of the VanEck Vectors Vietnam ETF.
ROS was also the most attractive stock to foreign investors, who poured a net buy value of 19.6 billion VND into this stock, equal to 65 percent of the total foreign net buy value recorded on June 12.
But despite the rapid rise of ROS, poor investor sentiment was illustrated in foreign investors’ low net buy value, which has dropped from a value of 220 billion VND made on June 6 and remained modest since then.
The fall of foreign net buy value could be the result of foreign investors’ caution ahead of the scheduled two-day June 14 Fed meeting to decide whether it should increase interest rates this month.
However, Bao Viet Securities (BVSC) said in a note that a lending rates hike would not have a major negative impact on Vietnam’s stock market as investors have already priced in the chance for a rate hike this time.
According to the brokerage, investors would pay attention to how many rate hikes could be made this year, and a smaller number of rate hikes for this year could be a boost for global stock markets in the short term.
On the Hanoi Stock Exchange, the HNX-Index finished at 96.83 points, down 0.54 percent from last week’s closing level.-VNA
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