HA NOI (VNS) — National stocks rallied during yesterday's session after declining to the attractive price level.
On the HCM City Stock Exchange, the VN-Index gained 1.94 per cent to 471.09 points. Gainers outnumbered losers by 181-55.
However, trading was sluggish, reaching only VND487.7 billion (US$23.2 million) – a drop of 37.4 per cent over the previous day – on a volume of nearly 35.6 million shares.
The VN30, composed of the city's leading shares, also rose 2 per cent to 539.08 points.
Investors sentiment on these large-cap stocks improved with only PetroVietnam Low Pressure Gas Distribution Co (PGD) retreating.
Meanwhile, insurer Bao Viet (BVH), steelmaker Hoa Sen (HSG), financial firm Ocean Group (OGC) and PetroVietnam Drilling Services (PVD) hit their ceiling prices.
Prices increased as sellers halted their activities. However, there were not many positive signals, while market liquidity significantly declined compared to the previous sessions.
In addition, several major technical indicators remained negative with prevailing sell pressure, FPT Securities Co analysts wrote in their review yesterday.
"Currently, with the 480-490 threshold acting as a strong resistance, we do not expect the ability of the VN-Index to rally again," the analysts said.
They predicted the index would range from 470 to 475 points today with much tension.
On the Ha Noi Stock Exchange, the HNX-Index advanced by 2.56 per cent to 60.82 points.
As 40.4 million shares changed hands, turnover fetched VND311.3 billion ($14.8 million), accounting for only 70 per cent of Tuesday's value.
The HNX30, tracking the northern bourse's largest stocks in terms of capitalisation and liquidity, finished the session 3.56 per cent higher at 117.16 points.
"Generally, as the HNX-Index has not exceeded 63 points, we believe that its recovery will faces a lot of difficulties," FPT Securiites analysts stated.
In the upcoming session, market liquidity should be watched rather than prices, they added, "and if it continues to fall, it's more likely this rally will end quickly".
Foreign investors yesterday concluded as buyers by a margin of some VND13 billion ($619,000), drawn mostly by PetroVietnam Finance (PVF), PetroVietnam Technical Services (PVS) and wood processing firm Truong Thanh Furniture (TTF). — VNS