VN-Index hits seven-month high

Phuong Thao

Without put-through transactions, trading concentrated largely on blue-chips, explaining a drop in trading volume by 6% to 70.2 million shares while value was flat at around VND1 trillion. Oil and gas stocks led the market, advancing 6.6% as a group with PVD hitting the ceiling price.

The market fluctuated in a narrow range in the morning but stronger cash flow in the afternoon lifted the index up to the intraday high at the close. Aside from oil and gas stocks, the securities sector also had a strong day with all tickers advancing.

On the Hanoi market, the HNX-Index also enjoyed the sixth straight winning day, gaining 0.75% against the session earlier to close at 69.99. The oil and gas sector also contributed the most to the northern index.

Trading volume and value improved by 30% and 12% to 56.2 million shares worth VND454 billion. SHN took the lead for liquidity with nearly 6.5 million shares changing hands.

Foreigners increased buying by 65% to VND38 billion on the southern bourse. PVD and VCB were the most heavily bought tickers, accounting for nearly 50% and 30% of the net buying value respectively.

Viet Dragon Securities Company (VDSC) said that liquidity on the southern bourse dropped slightly but foreign inflows increased remarkably. Foreigners concentrated on blue-chips, of which PVD was the most heavily bought ticker for the second straight day.

Thanks to strong participation of foreigners, investors’ sentiment was positive and thus trading on the market was more optimistic, the broker commented.

“However, given the lack of supporting information, investors’ sentiment actually is still unstable as the market has seen seesaw trading in recent days. Moreover, we notice that investors have made positive reactions to stocks which have reported high business results in the fourth quarter of 2013,” VDSC said.

“For instance, today was a show of securities stocks after many brokers announced positive financial statements. Therefore, we suggest that investors who still keep a high proportion in cash could disburse into stocks with good fundamentals,” it said.

VDSC said that the VN-Index regained the rising momentum while the HNX-Index continued its rising streak on Wednesday. Both indices may extend their rallies in the coming time but selling pressure may increase in today’s session.