Viet Capital Securities Company said mid-caps performed better. Although liquidity dropped dramatically by half on the southern bourse, some tickers saw strong buying and made a rally, namely HPG, REE and DPM.
“VIC also advanced 0.7% with good liquidity. We believe it related to market talk of its successful bond sale of US$200 million out of the total US$300 million,” the broker said.
VNM and CTG continued to see block deals with a total value of VND130 billion. Foreigners turned slight net sellers on the southern bourse but as a result of liquidity decline, doubled their usual participation rate to 26% out of total market turnover.
Meanwhile, the Hanoi market extended its winning streak to the third straight session on Thursday thanks to strong demand for mid-caps. The HNX-Index increased 0.05 point, or 0.09%, from the session earlier to close at 61.64. Liquidity on the northern bourse tumbled with only 15.7 million shares worth VND156 billion changing hands.
Viet Dragon Securities Company said investors narrowed trading for unknown reasons on Thursday but the VN-Index had no supporting news to keep advancing.
“We’ve seen some negative signs today as liquidity has decreased and foreigners have turned net sellers in recent days after 22 consecutive sessions of staying on the buying side. The VN30 group performed badly with only seven stocks making gains, and demand for these stocks was lower than in previous sessions,” the broker said.
Closing October, the VN-Index increased a slight 1% against the end of September while it still failed to beat the 500-point level. The brightest points of last month were strong cash flow into speculative stocks and continuous foreign net buying.
“Tomorrow, Purchasing Managers Index (PMI) for November will be announced by HSBC Bank and it could be a positive factor for the index’s recovery. However, we think this is not strong enough to make investors turn more positive. Therefore, we encourage investors to observe the market until new supporting factors trickle in, the foreign ownership limit at listed firms rises, credit grows or the Trans-Pacific Partnership agreement is reached. All these will help both indices escape from the current sideways movement,” the broker added.