Viet Capital Securities Company (VCSC) said that stocks recovered from profit-taking to close in the positive territory despite the foreign net outflows of VND58 billion.
Foreign selling of DPM accounted for over 40% of those net outflows. However, the fertilizer producer still managed to gain 2.7% and was the second largest contributor to the VN-Index’s gain after Vinamilk (VNM).
The VN-Index gained 1.28 points, or 0.26%, against the previous day to close at 497.5 while turnover on the Hochiminh Stock Exchange (HOSE) slightly improved to VND975 billion.
Property stocks saw bustling transactions after the central bank’s HCMC branch suggested a solution to help homebuyers access the VND30-trillion stimulus package. VIC took the lead for liquidity on HOSE with nearly 3.9 million shares traded while HAG and ITA saw 2.8 million and 2.1 million shares changing hands respectively.
On the Hanoi market, the HNX-Index fared slightly better, closing 0.4% higher at 63.25. Volume improved 16% against the previous day on accumulation of penny stocks late in the session.
With major companies expected to announce second-quarter earnings next week, the market appears optimistic, VCSC said.
HCMC Securities Company said that the market comfortably absorbed some foreign selling on Wednesday, a sign that domestic sentiment remained robust.
“No news to report really but there is a sense of expectation that the period of consolidation may be coming to an end soon and for the time being anyway,” the broker said.
Vietcombank Securities Company said that the market seemed to imitate movements in previous days given slight fluctuations of both indices. A tug of war between demand and supply took hold and differentiation among tickers continued, showing that cash flows had yet to pour into the market and liquidity just stayed at a modest level.
Selling pressure has reached its lows in recent sessions, but the buying side remained in the cautious mode and restrained from disbursing, it commented.
“The long-term side apparently needs more time to accumulate stocks while awaiting participation of new demand force. We think that investors should maintain reasonable stock weighting and closely watch market movement in the coming sessions. Disbursement should be made into tickers of sound fundamentals, optimistic second-quarter business results. However, chasing up price is not recommended,” the broker added.comments powered by Disqus