Stocks rebound as blue chips rally

Update: March, 18/2015 - 09:02

A broker watches market movements at Technology FPT Group's trading floor in Ha Noi. The VN-Index rebounded from a one-month low yesterday.— VNA/VNS Photo Thai Ha

HA NOI (VNS) — The VN-Index rebounded from a one-month low as blue chips rallied yesterday.

On the HCM Stock Exchange, the Index edged up 0.17 per cent to close the session at 581.76 points. The VN30, which tracks the top 30 shares by market value and liquidity, rose 0.1 per cent to end at 611.24 points.

The market slumped on Monday under selling pressure from Market Vectors Viet Nam, an exchange-traded fund which is conducting its portfolio reviews this week. Nonetheless, increased trading by risk-taking investors supported the market.

"The likelihood of a steep fall on the market is very small. In our opinion, demand will increase in the coming sessions when the VN-Index fluctuates around 575 points," analysts at Sacombank Securities Co said in a note.

Increases were seen in large-cap stocks yesterday, including Vietcombank (VCB), FPT Corp (FPT), VinGroup (VIC), Bao Viet Holdings (BVH), PV Gas (GAS), Hoang Anh Gia Lai Co (HAG), Saigon Securities Inc (SSI) and Phu My Fertiliser (DPM).

However, as investors only agreed to buy at low prices, their growth was modest and liquidity declined slightly.

The market value dropped 6.6 per cent from Monday's level, totalling nearly VND1.7 trillion (US$79.4 million) while trading volume reached more than 105 million shares.

With support of strong inflows, FLC Group (FLC) remained the most heavily-traded stock with a whopping volume of 18.3 million shares, far exceeding the second most active code, Tan Tao Investment and Industry Corp (ITA) with 4.9 million shares.

FLC closed flat at VND12,000 ($0.56) a share.

On the Ha Noi Stock Exchange, the HNX-Index also recouped 0.32 per cent to finish the session at 85.36 points while the HNX30, the tracker of the top 30 shares by market liquidity here, increased 0.54 per cent to stand at 163.6 points.

Investors focused on stocks with good fundamentals. This kept liquidity modest with just nearly 53 million shares worth VND680 billion ($31.8 million).

KLF Joint Venture Global Investment Co (KLF) was again the leading stock in Ha Noi with nearly 15 million shares traded, leaping 3.7 per cent to close at VND11,100 each.

According to analysts at Bao Viet Securities Co, speculative trading in the stocks involving ETFs' portfolio reviews will be maintained throughout the week. However, the market is also showing signs of weakening as bank stocks, the market momentum in the previous period, continue their correction phase.

"In addition, net selling activities by foreign investors which have lasted more than two weeks are fuelling domestic worries," analysts said in a market report.

Foreign investors were mixed yesterday. They were still net sellers in HCM City's market when unloading VND6.11 billion ($571,000) worth of shares but returning to be net buyers on the Ha Noi's exchange with a pick-up of shares worth VND6.87 billion ($321,000). — VNS