Index recovers, turnover down

14-Jul-2018 Intellasia | The Saigon Times | 6:02 AM Print This Post

Having plunged to the lowest level since November 2017, the VN Index of the Hochiminh Stock Exchange bounced back slightly today, but market turnover kept shrinking.

The main index closed the day up 5.35 points, or 0.6 percent, at 898.51. However, trading volume and value on the southern market declined 28.3 percent and 40.5 percent against the previous day at 113.7 million shares worth VND2.2 trillion.

According to securities enterprises, the insignificant recovery along with poor revenue was a gloomy signal for investors. Given the current poor demand, the main index may resume its downturn quickly.

Bernard Lapointe, head of research at Viet Dragon Securities JSC in HCM City, said in an interview with Bloomberg that market volatility is normal at the current stage.

“Buyers and sellers are arguing where we are going, taking profit. People have been burned in equities and will not come back that soon,” the expert said.

According to Bloomberg, after slumping 26 percent from its April record through Wednesday’s close, the nation’s VN Index has seen its volatility surge to levels not witnessed in more than eight years.

The index, which was Asia Pacific’s best performer just months ago, has now erased all of its 2018 gains, sinking more than any other regional benchmark from its peak. Since April’s high, Vietnam’s stock market has lost $29 billion in value as international investors spent three-fourths of their days withdrawing money from it in the past three months.

Banks were index savers today as seven out of nine listed banks gained ground. TPB was the only loser in the sector while EIB moved flat.

CTG was the most actively traded stock in the group, advancing 4.3 percent at VND21,800 per share on matching volume of 4.6 million shares, followed by MBB and STB with over three million shares traded each.

Among blue chips, HPG reported 3.3 million shares changing hands but the steel maker fell 1.9 percent at VND33,750 per share. FLC, a property enterprise, led the southern market for liquidity with 5.1 million shares transacted, rising a slight 0.8 percent at VND4,800 a share.

The Hanoi Stock Exchange fared better, with the HNX-Index soaring 1.94 percent at 100.43. Turnover on the market also reduced strongly as volume and value tumbled 40 percent and 38 percent to 25.7 million shares worth VND380 billion.

Lender ACB was the best performer on the northern bourse, surging 3.8 percent at VND33,100 a share on matching volume of 4.1 million shares. Its fellow bank SHB again was the volume leader with 5.7 million shares traded, climbing 4.2 percent versus the previous day at VND7,500 per share.


Category: Stocks, Vietnam

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