Despite a slowdown in November CPI (consumer price index) figures of HCMC and Hanoi, the local stock market had yet to see a sustainable recovery as investors remained cautious. The VN-Index inched up a mild 0.71 point, or 0.18%, against the previous day to close at 397.71.
The market opened in positive territory and ran up several points before hitting the daily high of 399.22 points and dropping back briefly into the red. Stocks then recovered just over a point to end the morning session in the black. In the afternoon, trading saw sudden weakness before a late recovery brought the index just into positive territory.
On the Hochiminh Stock Exchange, both volume and value tumbled around 30% against the previous day to 35.3 million shares worth VND475 billion. The put-through market was active for a second day with another large deal in EIB.
Gainers slightly outnumbered losers by 115 to 95, including 34 stocks hitting the ceiling prices and 50 stocks plunging to the floor prices. The index heavyweights were mixed with gains in GAS and HPG while VIC and VCF fell back.
Tan Tao Investment Industry Corporation (ITA) continued to take the lead for liquidity but again plunged to the floor price of VND4,300 per share with 4.8 million shares changing hands. Saigon General Service Corporation (SVC) followed, closing at the ceiling price of VND8,600 on a volume of 1.1 million shares.
Foreigners were inactive although they were still net buyers, making up 10.4% and 8.3% of the market’s buying and selling value respectively.
The Hanoi market clawed back some ground while turnover fell further to VND126 billion. The HNX-Index rose a slight 0.21 point, or 0.39%, from the session earlier and ended the day at 54.56.
There were 108 stocks advancing while 87 stocks declined, including 32 stocks hitting the ceiling prices and 37 stocks dropping to the floor prices. Foreigners accounted for 3.2% of the buying value and 1.1% of the selling value.
Viet Capital Securities Co. (VCSC) said that stocks were up on low CPI figures coming out of HCMC at 0.18% and Hanoi at 0.13%. The return of a trade deficit in October to US$375 million year-to-date had little impact on sentiment because investors were already bracing for a pickup in imports heading into preparation for the Tet holiday.
“Risk appetite is still weak as investors are hesitant and remained on the sidelines. As such, the market may trade sideways in the coming sessions. A rally, if any, will face strong resistances at 400-405 points for the VN-Index and 56-57 points for the HNX-Index,” VCSC said.
The Saigon Times Daily
