July 19: Vietnam Shares Extend Gain, Liquidity at 1.5 Month High
Vietnamese shares posted biggest gain since 21 May, 2012 as investors rushed to buy shares on pouring liquidity when the VN Index passed through the resistance area with rising volume.
The benchmark VN Index rose 9.55 points or 2.28 percent to 428.38. Volume rose 71.86 percent to 84.9 million shares worth of VND1.26 trillion. Put through trading contributed 12 million shares worth of VND278.66 billion.
We continue to see 7 million CTG shares changed hands at VND22,000 each, the same price level of other heavy put-through deals done earlier. Also we saw 1 million SBT shares changed hands at VND16,500 each.
The market breadth was broadly positive on the primary bourse where 224 stocks advanced, 51 declined, 32 closed unchanged.
The VN30 gained 8.49 points or 1.72 percent, to 502.6. Amongst its 30 members, 28 gained, 0 lost and 2 unchanged.
The market opened in the red with 4 million shares changed hands as profit taking pressure was high.
Today 52.8 million shares traded in a soaring session last Friday were available to sell. However, the index soon climbed into the positive ground as buyers came in. The trading pace was fast as buyers and sellers were active. The index fell again in the negative session in late morning session before buyers rescued the market.
The trading boomed in the afternoon session with aggressive buying efforts. The index went sharply up as many share prices hit the ceiling. Market closed at the high of the day with heavy liquidity.
The fighting today was seen in not only 1 particular stock but in several ones. In the morning, first all eyes focused on VNE when profit takers massively closed the position in the share, sending the prices down 2 lines but buying interest was strong enough to boost the price back to the ceiling level at the end.
Then, investors closely followed movements in BVH, whose share prices fell sharply in the past 2 months and media reported that HSBC was trying to sell its all 18 percent stake in the insurer. Buying into BVH was steadily, and in order, buyers took the higher hand on the table.
More interestingly was the SBS case. The broker share first saw over 1 million outstanding bid at the ceiling waiting for being filled. There were only 4 orders filled from the open to 10:14, then suddenly sellers dumped shares after the news that the share will be placed under exchange scrutiny from July 23 after the broker reported an accumulated 1.4 trillion dong ($67 million) hit the wire. The stocks will be allowed to trade only in the 15 minutes of ATC session from July 23.
Selling SBS orders flew into the board, sweeping all the outstanding bids from the ceiling prices to the floor. Soon, outstanding offer hit over 1 million shares, however, the story did not end here, big buyers came back and scooped out all the shares. The buyers and sellers in turn took control of the trade, making it a real fighting and interesting. Most of shares changed hand at the floor prices then. At the close, more than 400,000 share bids were still left unfilled.
SAM was also the other stock to watch today as the bulls and the bears showed much conviction.
Securities shares were late risers, but they rose firmly and convincingly, HCM, SSI were all ceiling gainers.
On the Hanoi Stock Exchange, the HNX soared 1.9 points or 2.67 percent to 72.93. Trading volume rose 80.45 percent to 69.4 million shares worth VND635.3 billion.
The market breadth was negative where 239 rallied, 39 declined, 38 closed unmoved and the rest unchanged.
HNX30 gained 5.7 points or 4.23 percent to 140.33.
PetroVietnam Construction Joint Stock Corporation (PVX) was the most active stock on the bourse with 11.5 million shares traded, closing up 6.5 percentto VND9,800.
VNDIRECT Securities Corporation (VND) came second with 5.7 million shares traded, closing up 6.5 percent to VND 11,400.
Kim Long Securities JSC (KLS) ranked third with 5.5 million shares traded, closing up 6.3 percent to VND10,200.
Category: Stocks
