Shares continued to rally on the HCM Stock Exchange on May 6 with the support of large-cap stocks.
The benchmark VN Index gained another 1.28 percent to finish the trading session at 426.39 points while the VN30 Index, which measures performance of the biggest 30 shares by value and liquidity, climbed 1.22 percent to stand at 504.11 points.
Amongst the 30 codes, 25 posted gains with financial Ocean Group (OGC) and Sacombank Securities Co (SBS) hitting the one-day limit rise of 5 percent. Other heavyweight shares such as Vietcombank (VCB), insurer Bao Viet Holdings (BVH) and property developer Vingroup (VIC) each also rose over 2 percent.
Trades decreased in the afternoon, driving the market value down 13 percent from a day earlier, totalling nearly 1.75 trillion VND (83.3 million USD) while volume of trades reached 91.5 million shares.
Negotiated trades continued to be high, reaching 1.2 trillion VND (57.1 million USD), led by Sacombank (ST) with another 44.8 million shares traded. In nearly one month, almost 200 million STB shares were exchanged through negotiations, accounting for nearly 20 percent of the bank’s charter capital.
The HNX-Index on the Hanoi bourse also recouped 0.27 percent to close the May 6 session at 73.78 points with advancers doubling decliners. However, market volume and value were still sluggish with 36 million shares worth almost 350 billion VND (16.7 million USD) traded.
According to stock analysts of BIDV Securities Co, the two-day recovery was purely technical when shares fell to an attractive price range and it has yet to signal an uptrend, especially while overseas investors continued to unload shares on the HCM City exchange.
Foreigners again concluded as net sellers on both stock exchanges, responsible for a combined net sell of 48 billion VND (2.3 million USD). Since the beginning of this week, they unloaded a combined 272 billion VND (13 million USD) worth of shares on both markets, of which shares worth over 250 billion VND (11.9 million USD) were sold on the HCM City exchange.
Besides, the dong traded over banks slipped to over 21,000 VND against the US dollar, heaping pressure on investor psychology, they wrote in a research note.
“Risk levels are rising rapidly for investors holding shares. Therefore, investors should consider reducing the proportion of stocks in their portfolio to minimise the risk of further market decline.”