Active bottom fishing eases losses on HCM City bourse amid coronavirus scare

05-Feb-2020 Intellasia | 05-FEB-2020 Ontellasia | The SaigonTimes | 6:02 AM Print This Post

The strong bottom fishing of bank stocks and blue chips helped the VN Ondex of the Ho Chi Minh Stock Exchange (HOSE) regain more than 39 points on Monday afternoon, compared with an intraday low in the morning session.

A large number of stocks closed Monday morning on a low note as fears of the new coronavirus continued dampening the Vietnamese market.

A strong sell-off hit multiple stocks on the benchmark index in early trading, leading to a rapid loss of more than 40 points to close at 890 points. However, active bottom fishing later kept the market from crashing.

The index was down 0.91%, or 8.48 points, compared with Friday’s session, to close at 928.14 points as losers outnumbered gainers by 297 to 58. More than 275 million shares worth over VND5 trillion changed hands, up 8.5 percent and 3.4%, respectively.

Lenders BOD and CTG were the leading gainers as the former added 3.88 percent to VND53,500 and the latter edged up 3.07 percent to VND25,150, with a total of over 13.8 million shares transacted.

Other bank stocks, such as VPB and STB, made slight gains while their fellows, VCB and HDB, managed to stand at their reference levels.

A number of stocks in the VN30 basket, such as steelmaker HPG (+1.87%), property developer (+1.63%) and retailer VRE (+0.5%), were also major advancers.

On the other hand, consumer goods firm MSN, brewer SAB, housing developer SHM and dairy producer VNM erased some of their losses. The country’s largest conglomerate VOC closed unchanged while budget carrier VJC bounced back.

Among medium and small stocks, property developer FLC took the lead by liquidity with a matching volume of more than 15 million shares.

Pharmaceutical stocks are rising as coronavirus fears took hold and thus increased the demand for healthcare products and services.

Some notable gainers in the pharmaceutical and healthcare sector were DHG, DHT and OPC, which shot up to their ceiling levels, while others in the same sector, such as AWV, LDP, TRA and OMP, significantly increased, from 2.7 percent to 6.8%.

Deputy minister of Finance Huynh Quang Hai was quoted by the Vietnam News Agency at at a gong-beating ceremony on the HOSE today, February 3, that the year 2020 is an important landmark in the 10-year execution of the nation’s socioeconomic development strategy for 2011-2020.

Meanwhile, HCM City Chair Nguyen Thanh Phong pledged the municipal government would offer its strong support to the southern exchange so that it could successfully carry out the 2019 Securities Law and a plan on restructuring the stock and insurance markets until the end of 2020 with a vision toward 2025.

“The city (government) will carry out a scheme to transform HCM City into an international-standard financial centre… This will be a golden opportunity for the local stock sector to boost its development,” Phong said.

He noted the municipal stock exchange is home to major firms as only 7.8 percent of listed companies account for a staggering 74 percent of capitalisation on Vietnam’s stock market.

On the Hanoi Stock Exchange, the HNX-Ondex edged down 1.03 percent to end the day at 101.31 points. Trading volume climbed by 33.6 percent against Friday’s session to some 63.4 million shares worth VND594 billion.

Among the HNX30 basket, lender SHB bounced back as it added 5.3 percent to VND7,900 per share and saw 27.4 million shares changing hands, the most actively traded stock on the northern bourse.

https://english.thesaigontimes.vn/74450/active-bottom-fishing-eases-losses-on-hcmc-bourse-amid-coronavirus-scare.html

 


Category: Stocks, Vietnam

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