Stock Market bounces back

Both Ho Chi Minh Stock Exchange (HoSE) and Hanoi Stock Exchange (HNX) spent the whole session in positive territory. Advancers outran the decliners with 149 gaining against 62 falling on HoSE. Meanwhile 197 stocks rose up and 87 fell down on the HNX.

The market rebound came after analysts declared stocks were being undervalued, which could further attract investors back.

“Investors returned to buy shares on speculation that values were attractive enough,” said FPT Securities on its daily market news today.

HoSE’s VN-Index rose 1.01 points, or 0.21 per cent, to 478.45 points with the majority of stocks rising after being driven up by just three shares – MSN, BVH and VIC – throughout previous sessions.

Trading valuation significantly increased to VND1.19 trillion ($59.35 million), up 45.31 per cent while volume rose 16.34 per cent to 41.2 million shares.

Financial stocks also turned heads with Sai Gon Securities (SSI) adding 1.72 per cent, Sacombank and Eximbank both gaining over 1.3 per cent.

SSI also outperformed the bourse in terms of liquidity with nearly 1.8 million shares changing hands.

Bao Viet Holding (BVH) added 0.66 per cent, meanwhile Masan Group shed 1.32 per cent and Vincom Corp. fell 0.5 per cent. The major stocks of Hoa Phat Group (HPG) and FPT Corp. (FPT) also slid.

On the Hanoi exchange, HNX-Index advanced 1.54 points, or 1.47 per cent, to 106.3 points. Liquidity strongly fell to 24.59 million shares (worth $23.46 million), down 28.67 per cent.

Major stocks which advanced included Sacomreal (SCR), which gained 4.26 per cent, PetroVietnam Construction (PVX), 0.98 per cent, and PetroVietnam Insurance, 0.44 per cent. Bao Viet Securities (BVS) meanwhile finished 1.28 per cent higher.

Habubank (HBB) gained 0.93 per cent and Asia Commercial Bank (ACB) added 0.42 per cent as well. Kim Long Securities (KLS) was most active again with 2.47 million shares traded, after rising 1.41 per cent.

Penny stocks PVV, VKC, MIM, ARM, APP and TET were among the gainers besides the gaining blue-chips.

Foreign investors suddenly sold out in numbers today, after being net buyers continuously since December 29, 2010 session.

On HoSE they reduced buying to 2.25 million shares from 4.3 million shares yesterday with value shedding half to VND78.2 billion ($3.91 million).Meanwhile, selling volume rose from 1.8 million to 3 million shares, focusing on high-price stocks like VIC, CTD, FPT and SJS.

On the Hanoi exchange foreigners sold the net value of nearly VND7.4 billion ($370,000) shares of which PVX was among the most popular stock.

“It’s their regular strategy to sell when the market is up while buying when the market is down,” said research director for Lien Viet Securities Inc. Vo Van Minh.