Thursday, November 15 2018

VietNamNews

VN-Index hits 1,200 points on cash flow

Update: April, 10/2018 - 07:00
An investor follows stock movement at the Saigon Securities Inc (SSI) in Hà Nội. — VNS Photo Đoàn Tùng
Viet Nam News

HÀ NỘI — Strong cash flow poured in to the brokerage and real estate sectors helped push the benchmark VN-Index to a new record high of 1,200 points in the morning session and maintain the uptrend during most of yesterday session, with stronger growth in the last minutes of trading.

The VN Index on HCM Stock Exchange gained 0.36 per cent to close at 1,204.33 points, following the previous three-day increase of 1 per cent.

The index surpassed the 1,200 level and opened up an opportunity of hitting a new high range of 1,250-1,270 in the short term, Bảo Việt Securities Company (BVSC) said in its daily report.

“However, the index could still suffer some volatility and corrections while increasing, especially when reaching new highs,” BVSC said.

“Investors can take advantage of the market’s corrections to raise stock exposure for short-term positions, especially existing positions in the portfolio. Aggressive buying at high price ranges in bullish sessions should be avoided,” it added.

More than 251 million shares were traded on the southern bourse, worth VNĐ8 trillion (US$351.3 million).

The market trading condition was negative with 131 gaining stocks and 166 decliners while 58 others ended flat.

The brokerage, real estate and construction industries were among the best performers yesterday with their indices up 3.6 per cent and 1.6 per cent, respectively.

Among those gainers in the brokerage sector were Sài Gòn Securities Incorporation (SSI), up 5.7 per cent; VNDirect Securities Corporation (VND), gaining 4.5 per cent’ Hồ Chí Minh City Securities Corporation (HCM), increasing 3.37 per cent and FPT Securities Joint Stock Company (FTS), soaring 6.25 per cent.

Meanwhile, the best performers of the real estate sector were Khang Điền House Trading and Investment JSC (KDH), Đất Xanh Real Estate Service & Construction Corporation (DXG) and Hòa Bình Construction Group Joint Stock Company (HBC), which rose between 1.5 per cent and 3.5 per cent.

Large-cap stocks also performed well with the VN30 Index advancing 0.28 per cent to 1,177.68 points and 14 of the 30 largest companies by market capitalisation making gains.

Gaining stocks in the VN30 basket included Sacombank (STB) and petrol dealer Petrolimex (PLX) and property developer Vingroup (VIC).

According to BVSC, worries over a US-China trade war continued to put downward pressure on the market but it still appears unlikely that the two governments will let a trade war happen.

“Basically, we think the recent retaliation announcements from the US and China are only intended for gaining advantages before the imminent negotiation. We believe that a full-blown trade war is unlikely to happen. However, as long as the negotiation has not come to a final conclusion, the global stock markets are still affected by information on this matter,” BVSC said in its daily report.

“Alternate rises of large-cap stocks are maintaining the market’s upward trend. Cash inflows are forecast to diverge and mostly run into stocks supported by solid Q1 earnings results and positive reports of Annual General Meetings (AGM) season,” BVSC added.

On the Hà Nội Stock Exchange, the HNX Index decreased by 0.17 per cent to end at 137.79 points, down from the previous two-day gain of two per cent.

The UPCOM Index on the Unlisted Public Company Market went down 0.31 per cent to stay at 60.45 points, reversing its previous 0.36 per cent rally. — VNS

 

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