Shares rebound, liquidity hits low

Shares rose for the first time this week on Friday, driven by the recovery of heavyweight stocks, but liquidity hit a four-month low amid investor caution.

Viet Nam’s benchmark VN-Index edged up 0.41 per cent to close the session at 966.21 points, narrowing the Ho Chi Minh Stock Exchange’s index loss to 1.7 per cent this week.

On the Ha Noi Stock Exchange, the HNX-Index inched up 0.12 per cent to end the day at 105.88 points. The northern market index decreased 1.7 per cent after four trading days this week.

Liquidity, continued to drain with a total of 131 million shares worth VND2.4 trillion (more than US$101 million) traded in the two markets, both down more than 30 per cent compared to the previous session, marking the lowest level since January 29.

According to market analysts, low liquidity demonstrated investors caution and their lack of confidence in market prospects. From a technical analysis approach, a recovery phase accompanies low liquidity and often lacks sustainability.

Large caps drove the market on Friday, as more than half of the VN30 (which tracks the top 30 shares by market value and liquidity on the Ho Chi Minh Stock Exchange) gained value and only seven declined.

Brewer Sabeco (SAB), the biggest loser in the previous session, gained 4.1 per cent, closing Friday at VND240,500 ($10.3) per share, keeping its position as the most expensive stock nationwide.

Other major supporters included Vingroup (VIC), VPBank (VPB), budget airline Vietjet (VJC), housing developer Novaland Investment (NVL), Masan Group (MSN), steelmaker Hoa Phat Group (HPG), PV Gas (GAS) and DHG Pharmaceutical (DHG) with growth of between 0.5 per cent and 2 per cent.

On the other side, slumps from Vinamilk (VNM) and Vietinbank (CTG), two of the 10 biggest stocks by market value, dragged the market down.

Vinamilk lost 1.6 per cent while Vietinbank fell 1 per cent.

“The market is expected to decrease in the short run. Upward sessions (if any) are forecast to be only technical rebounds,” Tran Xuan Bach, a stock analyst at Bao Viet Securities Co, wrote in a daily report.

Next week, the VN30’s investment funds would conduct portfolio reviews for the first quarter of 2019. Blue chips in the VN30 might see unexpected fluctuations, Bach said.

“Investors could become even more cautious and hold off on investing, especially when the long holiday is coming,” he added.

Foreign investors were net sellers on the Ho Chi Minh Stock Exchange after four consecutive net buying sessions. Their net sell value was modest, however, with VND27 billion.

They remained net buyers on Ha Noi’s bourses, picking up shares worth nearly VND4 billion. 

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