Stocks make unexpected turnaround

17-Aug-2019 Intellasia | The Saigon Times | 6:02 AM Print This Post

Local shares fell into negative territory in much of the transaction day today, August 15, before making a sharp turnaround in the last matching phase as many blue-chip stocks rallied.

On the Hochiminh Stock Exchange, the VN Index plunged as much as 13 points in morning trade. Investor confidence was dampened as global stocks moved down last night on worries about global economic uncertainties.

However, bottom fishers turned active, snapping up blue-chip shares at lower prices, which drove up the VN Index by 10.47 points, or 1.08 percent, to 979.38 at the close. Lender EIB was the top advancer, surging 5.3 percent at VND18,000, followed by fellow bank VCB with a 3.5 percent rise.

Stock trade improved with volume expanding 21 percent against the previous day at 182.9 million shares and value soaring 24 percent at nearly VND4.3 trillion. Construction firm ROS remained the volume leader with 10.4 million shares changing hands, but lost 1.1 percent at VND26,400 per share.

According to securities firms, the strong volatility was predictable as the slowdown of the global economy might hit local market sentiment. Further, the VN30F1908 futures on the derivatives market fell due today.

Despite the strong bottom fishing, the market outlook remains bearish as foreign investors continue staying on the selling side. On the world market, protests in Hong Kong show little sign of abating, the firms said.

VNDirect Securities Company in a report said there were some signals that international markets would take a hit from uncertainties in the short term.

Global stocks cheered on Tuesday night after Unites States President Donald Trump had postponed 10 percent tariffs on over $150 billion worth of Chinese imports. However, China’s data showed the second largest economy had the weakest industrial output growth in 17 years.

The caution of professional investors was quite clear because short-term capital inflows, which is referred to individual investor purchases, depend on their decisions, it said.

According to Military Bank Securities Company, some investors have begun seeking opportunities in small-cap firms in recent times, as the market nears the end of the short-term uptrend. As large-cap stocks are running out of rising momentum, the VN Index may correct slightly tomorrow.

The Hanoi Stock Exchange dropped for the third straight session, with the HNX-Index dipping 0.32 percent at 101.66. Construction firm PVX led the market by liquidity with 3.4 million shares traded, moving sideways at VND1,500.


Category: Stocks, Vietnam

Print This Post