Liquidity evaporates into thin air

Matching volume fell to VND504.8 billion ($24.8 million) on the Ho Chi Minh Stock Exchange (HoSE) and to as little as VND207.1 billion ($10 million) on the Hanoi Stock Exchange (HNX).

HoSE’s total trading volume reached 55.8 million shares worth VND1.07 trillion ($51.5 million) thanks to high put-through volume. HNX’s liquidity was 27.2 million shares worth VND275.1 billion ($13.2 million).

The drying liquidity was despite signs of a rebounding market. The indexes were boosted from a falling trend at the end of yesterday’s session and significantly gained today.

The VN-Index advanced 4.21 points or 1.01 per cent to 422.37 points, helped by the gains of several blue-chips. Bao Viet Holdings (BVH) jumped 3.78 per cent, Vinamilk (VNM) 2.33 per cent, Masan Group (MSN) 1.52 per cent.

Financial stocks Saigon Securities Inc. (SSI), Vietcombank (VCB), Military Bank (MBB) modestly climbed, while Eximbank (EIB) strongly added.

Song Da Urban & Industrial Zone Investment and Development (SJS) hit the ceiling. PetroVietnam Drilling and Well Services (PVD) and PetroVietnam Fertilisers (DPM) strongly jumped.

Advancers also accelerated to 171 stocks, making up more than half the southern bourse. Just 56 stocks ended off.

Speculative mid-cap and small-cap stocks massively turned to rise, among them mineral stocks Binh Thuan Mineral Industry (KSA), Nari Hamico Minerals (KSS), Binh Dinh Minerals (BMC), Tay Bac Minerals Investment (KTB) massively hitting the ceiling again.

Real estate stocks Cotec investment and Land-House Development (CLG), Vietnam Electricity Construction (VNE), PetroVietnam-Idico Long Son Industrial Park Investment (PXL), Tu Liem Urban Development (NTL) were in strong demand again, sharply jumping with large bidding volumes.

Foreigners kept modest transactions with just 3.2 million shares purchased on the HoSE today.

The Hanoi bourse saw 125 advancers outrunning 99 decliners. Some 176 stocks ended flat. Banking stocks Asia Commercial Bank (ACB) and Habubank (HBB) slightly climbed.