Blue chips help VN-Index go into the green

By Hung Le   July 15, 2020 | 02:34 am PT
Blue chips help VN-Index go into the green
An investor looks at stock prices on a smartphone at a brokerage in Ho Chi Minh City. Photo by VnExpress/Quynh Tran.
After three consecutive losing sessions, the VN-Index rose 0.21 percent to 869.91 points Wednesday with blue chips driving the gains.

The Ho Chi Minh Stock Exchange (HoSE), on which the VN-Index is based, saw 223 stocks gain and 156 lose. Total transaction volume improved 10 percent over the previous session to reach VND4.47 trillion ($193.94 million), but was still much lower than last month’s daily average of VND6.67 trillion ($289.48 million).

Strong buying pressure right at the beginning of the session saw the benchmark index surge to over 876 points. The index floated above its opening price for the rest of the day, albeit with a gradual downward trajectory.

Brokerage Bao Viet Securities Company (BVSC) had predicted that the market would rally again after three losing sessions, basing their analysis on the fact that the VN-Index was reaching the "support levels" of 860-862 points.

In stock market technical analysis, support and resistance are certain predetermined levels of the price of a security at which it is thought that the price will tend to stop and reverse. Most securities companies in Vietnam consider multiples of 10 (points on the VN-Index) as support or resistance levels.

The VN30-Index for the stock market’s 30 biggest caps grew 0.59 percent this session, with 21 tickers gaining and eight losing.

Topping gains was CTD of construction giant Coteccons, surging 4.1 percent. It was followed by TCB of private Techcombank, up 2.5 percent, MWG of electronics retailer Mobile World, up 2.1 percent, and EIB of private Eximbank, with 1.8 percent.

All but one banking ticker gained this session. In the private sector, VPB of VPBank gained 1.4 percent, HDB of HDBank added 0.6 percent and STB of Sacombank kept its opening price.

Of Vietnam’s three biggest state-owned lenders by assets, VCB of Vietcombank climbed 0.6 percent, while BID of BIDV and VCB of Vietcombank both added 0.2 percent. MBB of mid-sized state-owned Military Bank rose 0.9 percent.

Other major gainers this session included PNJ of jewelry retailer Phu Nhuan Jewelry, up 1.5 percent, VRE of mall operator Vincom Retail, up 1.1 percent, and VHM of real estate developer Vinhomes, with 0.7 percent.

VIC of private conglomerate Vingroup, VRE and VHM’s parent company, and HoSE’s biggest capped stock, moved in the opposite direction of its subsidiaries, tumbling 0.9 percent.

SAB of major brewer Sabeco topped losses with 1.8 percent, followed by VIC, and SSI of top brokerage Saigon Securities Inc. also down 0.9 percent.

Oil and gas stocks were some of the VN30’s worst performers this session, with POW of electricity generator PetroVietnam Power shedding 0.5 percent, GAS of energy giant PetroVietnam Gas declining 0.1 percent, and PLX of petroleum distributor Petrolimex edging up only 0.1 percent.

Meanwhile, the HNX-Index for stocks on the Hanoi Stock Exchange, home to mid and small caps, fell 0.2 percent; and the UPCoM-Index for stocks on the Unlisted Public Companies Market inched up 0.07 percent.

Foreign investors continued to be net sellers to the tune of VND114 billion ($4.95 million) on all three bourses, with selling pressure mostly on MSN of food conglomerate Masan Group, which shed 0.5 percent, VCB and SAB.

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