VN-Index Bounces Back

The Ho Chi Minh Stock Exchange’s (HoSE) VN-Index closed October 5 at 450.96 point level, up 1.15 per cent or 5.13 points, against previous trading day, compared to the loss of 3.l2 points in early trading. Hanoi Stock Exchange’s (HNX) HNX-Index, meanwhile, rose 0.91 per cent or 1.1 point to 122.02 point level.

Trading values and volumes, however, were slightly lower with only 33.23 million shares worth VND840 billion ($44 million) changed hands on HoSE and 31.34 million shares worth VND721 billion ($37.9 million) on HNX.

Investors’ sentiment today was weak at earlier trading with many stocks hit floor, but later soared. Large market caps like BVH, MSN, VIC, PVF received investors’ risk appetite and the market started to see more green, rather than red colours as earlier.

“This trading day was very surprise to us,” a VnDirect Securities (VNDS) analyst told clients.

Market analysts said the market recovered in the last trading sessions thanks to foreign investors’ strong buying into blue-chips. BVH reached ceiling with over 250,000 shares changed hands, which foreign investors bought 92 per cent of BVH today. DPM up VND500 a share [foreign investors bought 80 per cent], FPT up VND1,000 a unit [foreigners bought 97 per cent].

Foreign investors also cashed heavily in other blue-chips like KBC, HPG, PVF, REE, SIS. “The problem is more to do with market demand and supply than anything else,” Ho Chi Minh City Securities Corporation (HSC) said.

In a related development, the Vietnam Securities Depository said it has issued licences to 17 new foreign institutional investors in September to trade local stocks, raising the total number to 1,377 ones. During the month, 58 foreign individuals also received permission to trade, increasing the total number to 13,200.

HNX, ACB, PVS closed flat, VCG and PVX up slightly. Overall, 170 stocks up, 97 fell and 74 unchanged with SGH, QTC, DBT, SGC hit ceiling and MKV, LTC, CCM and VBC plunged to the floor.