HA NOI — Shares continued to rally on the HCM City Stock Exchange yesterday with the support of large-cap stocks.
The benchmark VN-Index gained another 1.28 per cent to finish yesterday at 426.39 points while the VN30 Index, which measures performance of the biggest 30 shares by value and liquidity, climbed 1.22 per cent to stand at 504.11 points.
Amongst the 30 codes, 25 posted gains with financial Ocean Group (OGC) and Sacombank Securities Co (SBS) hitting the one-day limit rise of 5 per cent. Other heavyweight shares such as Vietcombank (VCB), insurer Bao Viet Holdings (BVH) and property developer Vingroup (VIC) each also rose over 2 per cent.
Trades decreased in the afternoon, driving the market value down 13 per cent from a day earlier, totalling nearly VND1.75 trillion (US$83.3 million) while volume of trades reached 91.5 million shares.
Negotiated trades continued to be high, reaching VND1.2 trillion ($57.1 million), led by Sacombank (ST) with another 44.8 million shares traded. In nearly one month, almost 200 million STB shares were exchanged through negotiations, accounting for nearly 20 per cent of the bank's charter capital.
The HNX-Index on the Ha Noi bourse also recouped 0.27 per cent to close yesterday at 73.78 points with advancers doubling decliners. However, market volume and value were still sluggish with 36 million shares worth almost VND350 billion ($16.7 million) traded.
According to stock analysts of BIDV Securities Co, the two-day recovery was purely technical when shares fell to an attractive price range and it has yet to signal an uptrend, especially while overseas investors continued to unload shares on the HCM City exchange.
Foreigners again concluded yesterday as net sellers on both stock exchanges, responsible for a combined net sell of VND48 billion ($2.3 million). Since the beginning of this week, they unloaded a combined VND272 billion ($13 million) worth of shares on both markets, of which shares worth over VND250 billion ($11.9 million) were sold on the HCM City exchange.
Besides, the Vietnamese dong traded over banks slipped to over VND21,000 against the US dollar, heaping pressure on investor psychology, they wrote in a research note.
"Risk levels are rising rapidly for investors holding shares. Therefore, investors should consider reducing the proportion of stocks in their portfolio to minimize the risk of further market decline." — VNS