Stronger selling douses market

HCMC – A strong flood of selling orders on the market on Thursday doused the market although the sentiment turned stronger on Thursday upon news of strong rallies on global markets, resulting a mild decline on the VN-Index, which eased 2.04 points, or 0.65%, from the previous session to 311.72 points.
The Hochiminh Stock Exchange reported investors bid for 78.5 million shares, decreasing 11% from the session earlier, while the amount on offer sprang up by a staggering 62% to 81.8 million shares. At the end of the session, the market’s total trading volume was 35.6 million shares worth VND850.8 trillion.
The market saw 57 stocks increasing and 89 others falling, including 21 stocks hitting the ceiling prices and 18 others falling to the floor prices.
Sacombank (STB) once again was the most actively traded stock on the bourse, increasing 2.1% to VND18,400 each on traded volume of 3.87 million shares. Saigon Securities Inc. (SSI), the second most traded stock, was up 4.89% to VND36,500 on volume of 2.28 million shares. Saigon Cables and Telecommunication Co. (SAM) rose 4.97% to VND19,000 with 2.18 million shares changing hands.
Most of other large cap stocks including Vinpearl Trading and Tourism Co. (VPL), Pha Lai Thermal Power Co. (PPC), Vinamilk (VNM), and PetroVietnam Fertilizer and Chemicals Co. (DPM) fell on the day.
Foreign investors were heavy net sellers as they reduced buying value by 72% to VND19.5 billion worth of 679,400 shares and sold 2.28 million shares worth VND56.5 billion.
Vietnam International Securities Co. (VIS) in its daily report said that investors would continue taking profit and restructuring their portfolios given first quarter earning reports published by listed firms.
“The VN-Index would possibly set aside and move around 310-315 points for the time being,” said the report.
Meanwhile, Dai Viet Securities Co. in its daily report said that the market’s trend was still unclear as two correct sessions were normal after the strong increase in several sessions earlier. In addition, despite lower trading volume, it was still at high level that meant the market might bounce back again.
Fiachra Mac Cana, managing director of HCMC Securities Corp. (HSC), said in a report that key issues such as SAM, SSI, KLS and REE were strong on Thursday suggesting that any correction was going to be fairly shallow.
“However our quant desk reminds us that unless the market stages a recovery tomorrow we may see further profit taking next week. Hence tomorrow is a key day for the market short term. Close up and the rally will be back in active mode. Close flat or down and we may see further modest declines next week,” he added.
Not like the southern bourse, Hanoi’s market rose 2.56 points, or 2.35%, from the session earlier to 111.49 points due to support from large cap stocks like ACB, BVS, KBC. The market’s total trading volume was 20.1 million shares worth VND486 billion, decreasing one-third from the session earlier.
There were 58 stocks advancing and 92 others falling. Foreigners, however, were net buyers on the northern bourse despite at a small margin. They bought 118,000 shares worth VND2.51 billion and sold 122,100 shares worth VND2.47 billion.
The Saigon Times Daily