VN-Index Gains on Blue-chip Rally

The Hanoi Stock Exchange (HNX) Index, meanwhile, corrected as it faced strong resistance.

Ho Chi Minh Stock Exchange’s (HoSE) VN-Index finished October 7 at 462.05 points, rise 0.29 per cent or 1.33 points with nearly 37.4 million shares worth VND983 billion ($50 million) changed hands. The HNX-Index closed 1.78 per cent or 2.22 points lower at 122.62 points with 23 million shares and VND539 billion ($27.6 million) traded.

The VN-Index intraday closed as high as at 467.61 points or up over 1.5 per cent before settling lower. The rally of key blue-chip like insurance stock BVH, fertiliser maker DPM, property developer VIC or food processor MSM continued today, helped driving the index higher even the numbers of falling stocks exceeded rallying.

BVH hit ceiling for three consecutive sessions to VND63,000 a share. Technology giant FPT also added VND1,000 while property developer HAG rose VND500 a share today. At the closing trading session, 59 stocks rose, 162 fell and 45 were unchanged, HoSE statistics show.

Infrastructure developer ITA was the highest liquidity stock with over 1.98 shares traded, followed by DPM with 1.9 million.

Foreign investors continued net buyers today with over 6.69 million shares [bought 11.5 million shares and sold 4.77 million shares), helping the index holding. Foreign investors today bought heavily in HAG, DPM, FPT, infrastructure developer CII and DMC on HoSE, while cashed in on PVS, KLS, VNC, S96 and SED on the HNX.

Foreign investors have been net buyers of Vietnamese equities recently and market analysts said that it came from new institutional investors who are heavily cash rich and favouring emerging markets.

“Recent foreign investors’ trading remain a top market focus,” an analyst with VnDirect Securities told clients.

The HNX-Index shed 1.78 per cent with trading volumes and values plunged 20.6 and 15.7 per cent, respectively. On the HNX, 234 stocks fell, 76 rallied and 62 closed flat. Financials PVS and brokerage KLS shares fell slightly with highest liquidity of 2.71 million shares and 1.56 million shares, respectively, traded.

“The rallied market is good, but with lower liquidity. Therefore, the market is poised for corrections over coming sessions,” said Pham Thanh Binh, PetroVietnam Securities  chief analyst, adding that the index is facing technical resistance 470 point.

“The market would likely test the 465-468 point range. This is an important level and we think that the supply side will rise to challenge demands. Investors with 80 per cent stock holdings should reduce when the VN-Index climbs to 465-468 range,” Tri Viet Securities analysts said.