Despite high selling pressure in the afternoon session, the local market still maintained its uptrend on Wednesday thanks to strong performances of many penny stocks, which have replaced large-caps to draw the capital flow of late.
On the Hochiminh Stock Exchange (HOSE), early gains ran into a wall of profit taking later on at the 470-point level where resistance appeared quite strong. The VN-Index did lose some points in the closing session but it still closed the day up 3.83 points, or 0.83%, to 465.25.
Liquidity kept improving with volume and value jumping 8.8% and 19% from the session earlier to 96.6 million shares worth nearly VND1.4 trillion. The put- through market was quiet with one large deal in GAS seen.
Viet Capital Securities Company said the market saw returned interest on pennies, which had been observed a day before.
The particularly strong performers were insurance stocks, which outperformed the VN-Index by 5.5% as both BVH and BMI almost hit limit-up. Meanwhile, real estate stocks outperformed the VN-Index by 2.6% with numerous tickers at ceiling prices such as DIG, TDH, BCI, KDH, ITC and NTL.
Auto and spare parts tickers also outpaced the main index by 5.4% as CSM and DRC both hit the ceiling prices. DRC on the day released better than expected 2012 results which triggered similar expectations for CSM, the ticker that just made a spot on the new VN30 list.
The HNX-Index rallied strongly during early hours, driven by leading stocks SCR, PVX, KLS and VCG, but later tumbled into the red in the middle of the morning session. Thanks to the newly enlarged trading band, the index was not pulled into the losing territory when some tickers such as PVI and LAS hit the limit up and saved the index.
With 199 stocks advancing versus 63 falling tickers, the HNX-Index rose 0.52 point, or 0.84%, against the previous day to 62.71. Turnover on the northern exchange also rose slightly to VND855 billion.
Foreigners maintained the same pace of buying on both exchanges, but the selling pressure significantly reduced, helping the foreign net buying value to improve 64.4% on HOSE while they reversed from a net sell into a net buy position on the northern bourse.
Viet Dragon Securities Company noticed that listed firms are going to announce last year’s business results. Besides expectations for macro policies, high profits of listed firms will help boost investor sentiment.
The market is still in the upward momentum with strong capital flow, especially for speculation stocks and those with mild rises during the recent rally. Nevertheless, the uptrend will have to struggle at the resistance of 470 points as profit takers will turn extremely active at this level, the broker said.
The Saigon Times Daily