Shares mixed, money flows in blue chips

Shares on the two exchanges moved in opposite directions on Wednesday with cash flowing into blue chips as investors sought opportunities to purchase quality shares at favourable prices.

The VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) inched down 0.27 per cent to close at 1,075.17 points. The southern market’s index rose 0.3 per cent on Tuesday.

Meanwhile, on the Hà Nội Stock Exchange (HNX), the HNX-Index extended its rally to six consecutive sessions with a growth of 0.67 per cent to end at 222.81 points.

Buyers had the advantage in market breadth with 564 gainers and 298 losers.

Within the VN30 basket (which tracks the top 30 shares by market value and liquidity on the HCM City’s exchange), 19 stocks ended lower while eight gained and three closed flat.

The heightened price volatility has significantly contributed to the increased liquidity in the basket. During this session, liquidity within the VN30 group surged by almost 14 per cent compared to the previous day, reaching VNĐ4.5 trillion (US$190 million), marking the highest level in the past six sessions.

Overall, market liquidity remained high with the trading volume in HoSE reached 924 million shares worth VNĐ15.8 trillion. The similar numbers in HNX were 136 million shares worth nearly VNĐ2 trillion.

Despite attempts to recover in the afternoon session, the VN-Index faced selling pressure from large-cap stocks, which hindered its progress. The decline was primarily driven by Vinhomes (VHM, down 2.6 per cent), Vietcombank (VCB, down 0.53 per cent) and Vingroup (VIC, down 0.8 per cent).

Việt Dragon Securities Co’s analysts have expressed concerns about the market’s challenges as the VN-Index approaches the range of 1,075-1,080 points, anticipating a rise in supply at this level.

“However, a quite good recovering signal showed the cash flow continued to support when the market retreated and tried to absorb the supply,” said analyst Phương Nguyễn in a note.

Phương predicted the market will continued to be supported and aim to test the supply at a higher price range in the near future, with the nearest resistance zone being 1,085-1,100 points.

Foreign traders also moved in opposite directions on the two bourses. They were net sellers for a net value of nearly VNĐ453 billion in HCM City’s market but were net buyers on the Hà Nội’s bourse with a net buy value of VNĐ21 billion.

Viet Nam News