Blue-chip reliance worries investors
Large-cap companies continued to drive shares on the HCM Stock Exchange up on November 3, but analysts warned of market volatility over investor worries about the market’s dependence on blue chips.
Investors watch stock movements at Saigon Securities Inc (Photo: VNA)Hanoi (VNA) - Large-cap companies continued to drive shares on the HCM Stock Exchange up on November 3, but analysts warned of market volatility over investor worries about the market’s dependence on blue chips.
The benchmark VN Index gained 1.28 percent – the highest growth rate since May 22 – to close at 843.73 points.
The VN Index had fallen 1.14 percent on the previous day but still made a weekly gain of nearly 0.4 percent.
More than 250.8 million shares worth 4.85 trillion VND (215.5 million USD) were traded on both bourses, on November 3, a slight increase in both trading volume and value over the previous day.
The market breadth improved, but there was no big difference between the number of gaining and declining stocks (148 to 116).
Large-cap stocks continued to cushion both local exchanges. The VN30 Index, which tracks the performance of the 30 biggest shares by market capitalisation and trading liquidity, gained 1.5 percent.
Among large-cap stocks that advanced, the strongest gainers were property developers, construction companies, energy firms and financial businesses, with stocks like FLC Faros Construction (ROS), Kinh Bac City Development Holding Corp (KBC), Bank for Investment and Development of Vietnam (BID), Vietcombank (VCB), VPBank (VPB) and PetroVietnam Drilling and Well Services (PVD).
Bao Viet Securities Co analyst Tran Xuan Bach said in the company’s daily report that the VN Index has recouped all losses made in the previous session and maintained its growth for the two consecutive weeks.
The strong rebound of the index could improve investor confidence in the near future, given the increase in gaining stocks after they had fallen sharply in recent sessions, he said.
However, there is no evidence the stock market would move up soundly, as it still depended a lot on the strength of large-cap stocks, Bach warned, adding that the divergence between large-cap stocks and others would make investors more cautious.
Also on November 3, the HNX Index on the Hanoi Stock Exchange rose 0.91 percent to end at 104.36 points, recovering from a three-day loss of 2.8 percent.
The northern market index dropped total 1.9 percent this week.
More than 47.5 million shares were exchanged on the northern market, worth 476.7 billion VND.
The northern market index was also driven up by large-cap shares such as Asia Commercial Bank (ACB), Bao Viet Securities (BVS), PetroVietnam Technical Services (PVS) and Saigon-Hanoi Securities Co (SHS).-VNA
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