Stronger demand sends VN-Index up

Phuong Thao

Meanwhile, the Hanoi market retreated for the second consecutive day with the HNX-Index down 0.05% and ended the day at 63.

Foreigners remained fairly active but reported net outflows of VND2 billion on the southern bourse and just VND6 billion worth of inflows on the northern exchange.

Viet Capital Securities Company said the earnings season is underway but announcements of company earnings results have been trickling out, which explains why liquidity has been tepid.

The southern bourse registered just 42 million shares traded and the northern bourse saw 18.7 million shares changing hands on Tuesday, down 3% and 6% against the previous session respectively.

HCMC Securities Company said foreigners had reduced trading activity. For now the VN-Index is moving in a narrow range.

This rarely lasts long with either a breakthrough on possible good news or a breakdown as domestic investors get bored waiting. The market, however, is still alive with less expectations on possible progress on the foreign ownership limit (FOL) change timeline.

Then some individual counters such as HAG and VNS have been moving higher due to first-half results because the prospects look better than expected, it said.

Vietcombank Securities Company said the southern bourse was holding positive elements as the VN-Index was in the green zone most of the day thanks to gains of major large-cap tickers.

Meanwhile, the northern bourse experienced downbeat sentiment as the HNX-Index settled below its initial level due to weakening blue-chips. Demand force was well maintained, yet the long-term side appeared to switch on cautious mode following the recent increase of stock prices.

The differentiation among shares remained owning to weak cash inflows. The alternative gains of different stock groups implied that buyers were in the middle of accumulating shares with acceptable prices, it noted.

“Given the aforementioned movement, the market was in a positive state with insignificant selling pressure and improving demand on investors’ expectation about a take-off of the market in the coming time. We, therefore, think that investors could consider disbursing partly into tickers of sound fundamentals, and good business results when these shares hit reasonable price levels,” the broker added.