The local market retreated on Tuesday as investors tried to lock in some of their gains after two rising sessions in a row, prompting the VN-Index to shed 3.07 points, or 0.74%, against the previous day to close at 410.91.
Liquidity, meanwhile, sharply improved given strong trading. On the southern exchange, there were 59 million shares worth VND791 billion changing hands at the end of the day, surging by 20.6% and 15.5% against the previous session respectively.
The market opened far higher and almost immediately reversed direction falling back quite sharply and into the red. A recovery in the second half of the day brought it back into positive territory where a late drop pushed the VN-Index below the line again.
Losers outnumbered gainers by 143 to 98, with 27 stocks hitting the ceiling prices and 44 stocks closing at the floor prices. Blue-chips were quite mixed but with a downward bias at the close.
Eximbank (EIB) was still the most heavily traded stock but it fell a slight 0.6% to VND16,400 per share on the volume of 4.1 million shares. Tan Tao Investment Industry Corporation (ITA) followed, gaining 1.1% against the previous day to VND9,000 with 3.9 million shares traded.
Foreign trading increased as the investors acquired 5.6 million shares worth VND114 billion and offloaded 3.3 million shares worth VND70 billion, accounting for 14.4% and 8.8% of the market’s buying and selling value respectively.
HCMC Securities Co. (HSC) said the market seemed to run into some selling pressure on Tuesday after a very bright start, which was perhaps unsurprising given the large amount of technical resistance between 410 and 420 points on the VN-Index.
“We may make a bit of heavy weather but as long as volumes hold up, we believe the market will push higher in coming days,” HSC said.
Viet Capital Securities Co. said it seems like between 420 and 425 points is a tough range to go through. However, short- and medium-term indicators still depict a bullish overall picture.
“We locked in profits in MSN and DIG at 29% and 34% respectively as we are happy with the decent profits considering the short holding period of about 1.5 months. However, the stocks are still in a short- as well as medium-term uptrend. We continue to believe that the market is going higher, so the core position for the first half of 2012 should be buy,” it said.
The Hanoi market also declined though turnover hit a five-month high of VND648 billion, with the HNX-Index dipping 0.38 point, or 0.59%, against the previous day to close at 63.89.
Only 98 stocks advanced while 143 stocks fell. Foreigners accounted for 2.7% of the buying value and 2% of the selling value.
The Saigon Times Daily
