Shares mixed on declining liquidity

February 09, 2023 - 16:55
Shares were volatile this week with up-and-down sessions intertwining amid rising investor caution about the market outlook.
Electronic board showing stock prices at Hồ Chí Minh Stock Exchange's headquarters in HCM City. VNA/VNS Photo Hứa Chung

HÀ NỘI — Shares were volatile this week with up-and-down sessions intertwining amid rising investor caution about the market outlook.

On the Hồ Chí Minh Stock Exchange, the VN-Index decreased 0.76 per cent to close Thursday at 1,064.03 points. The benchmark index increased 0.6 per cent in the previous session.

Liquidity declined from VNĐ12 trillion on Tuesday to VNĐ10 trillion on Wednesday and VNĐ9.2 trillion (US$389 million) on Thursday.

Billion-dollar-cap stocks dropped in the last trading minutes of the afternoon session, pushing the VN-Index down sharply, while overall market breadth was rather balanced with 235 stocks falling, 184 rising and 166 closing flat.

Vietjet (VJC) surprised the market with a loss of 5.7 per cent despite its earlier reporting an impressive recovery after COVID-19 with a year-on-year rise of 175 per cent in net revenue to VNĐ7.35 trillion ($313.4 million) and a profit of VNĐ902 billion in the last quarter of 2022.

Other big draggers included Vietcombank (VCB), Vietinbank (CTG), BIDV (BID), Techcombank (TCB), Masan Group (MSN), Mobile World Investment (MWG), Vinhomes (VHM), Vincom Retail (VRE) and Hòa Phát Group (HPG), each losing between 1.1 and 2.8 per cent.

With negative movements of many large-cap stocks, major industry groups including banking, real estate, iron and steel, securities, retail and beverages were among the worst performers on Thursday.

On the bright side, the oil and gas group gained value. The largest company by market value PV Gas (GAS) increased 0.8 per cent while PetroVietnam Drilling and Well Services (PVD) hit the ceiling price of 7-per-cent growth, Petrolimex Gas (PGC) was up 1.3 per cent.

According to Viet Dragon Securities Co (VDSC), the market's decline was restrained with a support level of around 1,065 points for the VN-Index. Decreasing liquidity showed that supply pressure temporarily cooled down.

“However, the market's ability to rally is still difficult as the cash flow is still cautious and the supply pressure gradually increases when the market rallies. It’s expected that the market will continue to fluctuate and probe at 1,070 – 1,080 points in the next trading sessions,” said VDSC’s market analyst Phương Nguyễn.

On the Hà Nội Stock Exchange, the HNX-Index increased for a second day, up 0.14 per cent to close at 210.91 points. The northern market’s index edged up 0.3 per cent on Wednesday.

Liquidity also declined here with more than 46 million shares worth VNĐ743 billion being traded, down 25.5 per cent in volume and 15.8 per cent in value compared to the previous session.

Foreign trading was mixed. Foreigners concluded as net sellers on HCM City’s bourse with a trivial value of VNĐ11 billion. They were net buyers but for a value of VNĐ5 billion on the Hà Nội exchange. — VNS