Vietnam’s stocks rebound on bottom-fishing
Vietnamese shares bounced back on January 18 after the previous day’s sharp fall sent stocks down to attractive prices, thus triggering investors to bottom-fish.
Investors check stock prices at MayBank Kim Eng Securities Company in HCM City (Photo: VNA)Hanoi (VNA) - Vietnamese shares bounced back on January 18 after the previous day’s sharp fall sent stocks down to attractive prices, thus triggering investors to bottom-fish.
The benchmark VN Index on the HCM Stock Exchange gained 1.5 percent to close at 1,050.25 points, recouping more than half of its loss in the previous session.
It suffered its worst decline rate in a year of 2.66 percent on January 17 to total a two-session loss of 2.7 percent.
The minor HNX Index on the Hanoi Stock Exchange rose 1.22 percent to end at 121.90 points after having decreased by a total of 1.3 percent in the previous two days.
More than 364.6 million shares were traded on the two local exchanges, worth 8.74 trillion VND (388.4 million USD).
The trading figures were down 10.9 percent in volume and 11.3 percent in value compared to the January 17 numbers.
The market trading condition was positive with 246 gaining stocks against 220 declining, while 126 other stocks were unchanged.
Brokerage companies attributed the market growth to investors’ bottom-fishing to scoop up stocks that fell on January 17.
According to Viet Dragon Securities Company (VDSC), the sharp fall of the stock market may have resulted from investors’ profit-taking after the market had gained substantially in recent weeks.
As trading liquidity remained high and no news was strong enough to have negative impacts on the market, VDSC said the market was unlikely to decline further in the near future.
Such a market fall could offer opportunities to investors to purchase low-priced stocks before the market turned upward, it said.
BIDV Securities Co (BSC) said that investors made strong purchases for stocks that had fallen significantly on January 17 and on the first trading half of January 18, thus boosting the stock market.
Financial-banking, energy, food and beverage, and real estate stocks recorded the highest growth rates on January 18 to bolster the market’s increase, data on vietstock.vn showed.
Eximbank (EIB), Sacombank (STB), Saigon-Hanoi Bank (SHB) and Vietcombank (VCB) pushed the banking sector up, while strong gains were also recorded in brokerage firms such as Saigon Securities Inc (SSI), VNDirect Securities (VND) and HCM City Securities (HCM).
Real estate, food and beverage, and energy stocks that rose strongly included Vincom Retail (VRE), Thanh Thanh Cong Tay Ninh Sugar Co (SBT), dairy firm Vinamilk (VNM) and PetroVietnam Technical Services (PVS).
However, the market’s strong growth on January 18 does not mean the market has turned fully positive as market trading liquidity fell in terms of both volume and value compared to the previous session, Saigon-Hanoi Securities Co (SHS) said.
“The market needs more time to stabilise at the current high levels and investors should be cautious with the highly volatile trading condition,” SHS said. - VNA
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