VN-Index surges above 400 points

Trading on the Hochiminh Stock Exchange (HOSE) was erratic as a number of mixed macroeconomic numbers came out throughout the day. Despite suffering some moments of the intra-session losing steam, the market was finally pulled into positive territory thanks to blue-chips.

With gainers narrowly outnumbering losers by 102 to 100, the VN-Index gained 1.63 points, or 0.41pct, from the day earlier to end at 401.34, marking the second straight winning session. VCB and CTG, which jumped 1.9 pct and 3.7 pct respectively, made the banking sector the largest contributor to the index gains with one point.

There were 50.8 million shares worth VND579.6 billion traded on HOSE, shrinking 23.4 pct if the block deals of MSN and PPC on Monday were excluded. But compared to a week ago, on Tuesday’s trading remained positive as foreign investors had reduced trading just after Christmas Eve.

Kinh Bac City Development Shareholding Corporation (KBC) took the lead in terms of liquidity with 2.8 million shares changing hands, followed by VietinBank (CTG) with 2.6 million shares. CTG was also the most actively traded share in terms of value with over VND51 billion.

The Hanoi market ended almost flat, lying just below the 55.5-point resistance level, while liquidity contracted to VND379.5 billion. The HNX-Index inched up a slight 0.04 point, or 0.07 pct, against the previous day at 55.04.

There were 82 stocks advancing and 121 others losing, with 34 closing at the ceiling prices and 32 dropping to the floor prices. Foreigners posted a net buying value of VND12 billion.

Vietcombank Securities Company predicted that there would be a shortage of supporting news in the coming time as the old year is almost out. Therefore, the market will find it hard to lure a large cash flow and both indices will continue moving in a narrow range in the remaining sessions of this year.

Viet Capital Securities Company said the markets have a high probability of declining today and divergence among tickers will be seen. Securities tickers have shown signs of profit-taking after soaring on December 24. Technical patterns also show that these tickers will likely retrace over the next few sessions.

“Therefore, we still recommend that investors not open a new buying position for now and should wait until the VN-Index reaches a support level of 387-390 points and the HNX-Index reaches 53-53.5 points,” the broker said.