Trading transactions are carried out at Alpha Securities Company (Photo: VNA) Hanoi (VNA) - Shares rebounded on the HCM Stock Exchange on November 1 as large-cap stocks returned to positive territory. The overall market trading conditions remained negative, however, and signaled more volatility in the near future.
The benchmark VN Index on the HCM Stock Exchange gained 0.65 percent to close at 842.71 points. It fell 0.94 percent on October 31.
More than 172.2 million shares were traded on the southern market, worth 3.85 trillion VND (171.4 million USD).
The trading figures posted a decrease of 10.3 percent in volume and 4.6 percent in value compared to October 31.
Despite the gains, the market was still dominated by declining stocks, which outnumbered gainers by 159 to 108, while 48 others ended flat.
Among all stocks, the large-cap group performed well with the VN30 Index that tracks the performance of the 30 biggest stocks by market capitalisation and trading liquidity increasing by 0.45 percent to 835.38 points.
The VN30 basket was led by FLC Faros Construction (ROS), PetroVietnam Drilling and Well Services (PVD), dairy producer Vinamilk (VNM) and PetroVietnam Gas (GAS).
PVD and GAS gained 5 percent and 2.1 percent, bolstered by crude prices that rose 1.25 percent to trade at 55.06 USD a barrel, for total growth of 7.3 percent since October 19.
Meanwhile, VNM advanced 2.6 percent after the State Capital Investment Corporation announced it would sell 3.33 percent of the State’s capital in the largest dairy company at the starting price of 150,000 VND (6.61 USD) per share. The auction will take place on November 10.
Bank stocks on the HCM Stock Exchange also performed well with Bank for Investment and Development of Viet Nam (BID) and Sacombank (STB) among the strongest gainers.
Though the VN Index posted good growth on November 1, analysts at Sai Gon-Hanoi Securities (SHS) remained pessimistic about the market’s future movement.
Investors were not active enough as they were trying to take over large-cap stocks while continuing to withdraw from small- and mid-cap stocks, leading to strong divergence on the market, SHS said in its daily report.
That increased the potential risk for the market and investors could hardly find any opportunities given the current market conditions, the Hanoi-based brokerage company said.
As November will likely remain the most difficult time for the stock market, as it has been in each year since 2009, the VN Index could fall back to the level of 840 points on November 2, SHS said.
On the Hanoi Stock Exchange, the HNX Index was down 0.17 percent to end at 104.98 points. The northern market index has dropped total 1.4 percent in the last three sessions.
Market trading liquidity was almost unchanged from the previous trading day, with more than 46 million shares traded – worth 494 billion VND.-VNA
VNA
