Trading on the southern bourse concentrated mostly on small and mid caps, reflected by a 17% improvement of trading volume to 73.5 million shares while value contracted 15% to VND929.5 billion.
Viet Capital Securities Company (VCSC) said part of the liquidity slump resulted from a trading reduction by foreigners, mainly exchange traded funds (ETFs). The investors net sold VND35 billion worth of shares on the HCMC Stock Exchange, mainly offloading HAG, CTG, VCB and BVH shares.
However, the VN-Index advanced impressively, buoyed by VIC, which regained from its losses during the at-the-close (ATC) phase. More put-through transactions were also seen on MBB shares, it commented.
On the Hanoi market, Song Da Group-related tickers remained strong but started to show divergence. PVX, which was excluded from the fourth-quarter’s portfolio of Van Eck Vietnam ETF, also shot up to the ceiling price.
The HNX-Index rose 0.37 point, or 0.56%, from the session earlier to close at 66.86. Turnover of the northern bourse also jumped 42% to VND345 billion.
Foreigners net bought VND14 billion, of which 80% concentrated on PVS. In fact, the ticker has recently seen a strong accumulation, VCSC added.
BIDV Securities Company said that the selling pressure of foreign investors on the main bourse was not a surprise because ETFs were still restructuring portfolios.
“We can see that albeit the ETF selling pressure, a number of domestic investors shifted to buy good stocks which have fallen deeply previously. Penny and mid-cap stocks also recovered but the uptrend was unclear. The tickers increased in the morning but then dropped back in the afternoon session,” the brokerage noted.
“The uptrend in medium and long term remains, while the short-term trend switches to a neutral state. The market may fluctuate depending on ETF trading this week. Notably, the Van Eck Vietnam ETF will sell a total of 34 million PVX shares to remove PVX from its portfolio. Investors should consider maintaining a good proportion between safe stocks to cash and can pick up good fundamental stocks which have declined in price.”