Many firms’ positive second-quarter earnings elevated the local market on Tuesday as most stocks regained strength after a slight hiccup on Monday. The VN-Index rose 3.57 points, or 0.86%, against the previous session to close at 417.55.
Stocks lost in early trade, then quickly moved into positive territory and gained further ground steadily for the rest of the morning session. In the afternoon, trading saw additional gains of a few points before the market closed just off the highs.
Liquidity on the southern exchange sharply improved with 48.1 million shares worth VND782 billion changing hands, up 15.3% and 39.6% against the previous day respectively, including VND220 billion from the put-through trading of 10 million CTG shares.
Advancers largely outnumbered laggards by 199 to 36, of which 78 tickers went limit-up. Blue-chips BVH, SSI, MBB, PVF and HAG together contributed 1.2 points to the index.
Tan Tao Investment Industry Corporation (ITA) was the leader in terms of volume with 1.8 million shares changing hands while Saigon Securities Inc. (SSI) took the lead for value with VND31 billion exchanged.
Foreigners were net buyers again but their participation level remained fairly low, making up 15.7% and 13% of the market’s buying and selling value respectively.
The Hanoi market rebounded sharply with turnover increasing to nearly VND370 billion. The HNX-Index jumped 1.62 points, or 2.32%, from the session earlier and ended the day at 71.4.
Up to 196 stocks rose and 43 others declined, with 61 rising to the ceiling prices and 14 dropping to the floor prices. Foreigners accounted for 3.7% of the buying value and 1.2% of the selling value.
HCMC Securities Corp. (HSC) noted that the markets continued their move to the upside after taking a breather on Monday. Volumes expanded while high-beta stocks had a very good day overall led by brokerage stocks.
“Both the HNX-Index and VN-Index have broken above short-term moving average lines now, suggesting that this current rally has some legs to it. We have also seen a noticeable increase in margin positions as retail investors have returned while foreigners have also recently turned net buyers again albeit by a fairly small degree. The market looks likely to move carefully higher for the time being as technical factors suggest more upside potential over the coming weeks,” HSC said.
Viet Capital Securities Co. said short-term momentums are in a bull cycle and the medium-term momentums are very likely near bottom. Order data also shows around 20 million unmatched bid orders on the southern bourse and 41 million unmatched orders on the Hanoi market at the end of Tuesday’s session could fuel more upside.
The Saigon Times Daily