VN-Index bounces back as trading cools down

The benchmark index had continued its corrective momentum in the morning and early-afternoon sessions, falling by as much as 10 points before rebounding within the final hour of trading to gain around 14 points as buy orders for blue chips, especially VIC of Vingroup, piled in.

The Ho Chi Minh Stock Exchange (HoSE), on which the VN-Index is based, was predominantly green with 225 stocks gaining and 181 losing. Total trading volume fell nearly 30 percent over the previous session to VND6.56 trillion ($282.15 million), on par with last month’s daily trading average.

According to analysts, after four sessions in which the VN-Index plunged a total of 4.39 percent, investors stopped trying to take profits and are now bottom-fishing, causing the market to rise again.

A restructuring of their portfolios by exchange traded funds like the VN Diamond ETF, the VNMVN30 and the SSIAM VNFIN Lead was also a reason for large movements during the at-the-close trading, which takes place within the final 15 minutes, they added.

The VN30-Index for the stock market’s 30 largest caps rose 0.66 percent, but only 11 stocks gained compared to 15 that lost.

Topping gains was VIC of private conglomerate Vingroup, HoSE’s largest cap, with 5.8 percent, contributing a 5.5-point gain to the VN-Index, according to data from brokerage VNDIRECT.

However, its subsidiaries, VHM of real estate developer Vinhomes and VRE of mall operator Vincom Retail, shed 0.3 percent and 1.2 percent respectively.

Other big gainers this session were spread among different sectors. KDH of real estate developer Khang Dien House rose 4.4 percent, PNJ of jewelry retailer Phu Nhuan Jewelry was up 4 percent, HDB of private HDBank, 2.5 percent, and MWG of electronics retailer Mobile World, 2.3 percent.

The remaining blue chips in the green, which included PLX of petroleum distributor Petrolimex, VPB of private VPBank, and VNM of dairy giant Vinamilk, rose between 0.7 percent and 2 percent each.

In the opposite direction, TCB of private Techcombank led losses with 2.1 percent, followed by POW of electricity firm PetroVietnam Power, down 2 percent, and STB of private Sacombank, down 1.5 percent.

All three of Vietnam’s largest state-owned lenders by assets slumped this session, with VCB of Vietcombank down 0.7 percent, BID of BIDV, 0.4 percent and CTG of VietinBank, 0.3 percent. MBB of mid-sized Military Bank kept its opening price.

An industry group which saw most of its tickers perform negatively was real estate and construction. In addition to VHM, TCH of Hoang Huy Group shed 1.1 percent, ROS of FLC Faros 0.9 percent, while NVL of Novaland kept its opening price.

Meanwhile, the HNX-Index for the Hanoi Stock Exchange, home to mid- and small-caps, was up 0.57 percent, and the UPCoM-Index for the Unlisted Companies Market gained 0.18 percent.

Foreign investors continued to be net sellers this session to the tune of over VND565 billion on all three bourses. The most net sold stocks were again MSN of food conglomerate Masan Group, which remained flat, and VNM of Vinamilk, up 1.1 percent.