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All indexes down on low liquidity

Released at: 18:45, 17/10/2016 Stock Market Watch

All indexes down on low liquidity

Liquidity down substantially on October 17 as mid caps preferred over large caps.

by Hung Khanh

All main indexes on both stock markets lost ground on October 17 amid low liquidity.

 

On HSX the VN-Index fell 6.05 points (0.88 per cent) and the VN30-Index 7.13 points (1.08 per cent) while on HNX the HNX-Index closed 0.49 points (0.57 per cent) down and the HNX30-Index 0.61 points (0.4 per cent).

 

The UPCoM Index also fell, by 0.29 points (0.5 per cent).

 

HSX saw 92 shares increasing and 157 decreasing while HNX saw 96 increasing and 135 decreasing.

 

Liquidity on HNX was VND359 billion ($16.09 million), down 14 per cent against last Friday, and on HSX was VND1.71 trillion ($76.65 million), down 20.4 per cent.

The VN-Index opened at 687 points and fluctuated before falling to 684.26 points late in the morning session. It then recovered to 686.05 points then eased 685.02 points at the close. In the afternoon session it rose to 685.25 points before falling sharply and closing at 680.95 points.

 

Low trade was seen all round, with cash flowing to mid caps at the expense of large caps. Seven of the ten highest trading shares were mid caps, with CII surprisingly recording the highest trade of the day, of some VND136 billion ($6.09 million), while losing 3.4 per cent. HPG followed, with trade of VND109 billion ($4.88 million) and losing 1.5 per cent, then VNM, which lost 1.2 per cent on trade of VND102 billion ($4.57 million). Other mid caps with high trade included FLC, with VND83 billion ($3.72 million), KBC VND47 billion ($2.1 million), TCH VND44 billion ($1.97 million), PVD VND42 billion ($1.88 million), ROS VND37 billion ($1.65 million), and HBC VND35 billion ($1.56 million).

VIC closed at its opening price.

 

In banking, VCB lost 2.2 per cent, marking four consecutive days of decline. MBB, BID and STB lost 1 per cent, BID 0.6 per cent, and STB 0.1 per cent, while CTG and EIB closed at their opening price.

 

Among energy shares, GAS and PGD shed 1.8 per cent and 0.5 per cent, respectively, as CNG gained 0.5 per cent.

 

Falling large caps on HNX included PVS, by 2.8 per cent, ACB 1 per cent and PHP 0.5 per cent. PTI closed up 7.7 per cent, SHB and PVI 2 per cent, VCG 1.2 per cent, VCS 0.8 per cent, and NTP 0.6 per cent. 

 

Foreign investors net sold on HSX by VND55.3 billion ($2.47 million) and on HNX by VND17 billion ($762,110).

 

The market opened with caution exercised by investors over large caps, seeing the VN-Index fluctuate around its opening price early on. In the second half of the morning session, high supply from BVH, FPT, GAS, PVD and AAA saw indexes fell. It was worse in the afternoon but the VN-Index remained at the 680-point level thanks to BID, MBB, and ROS. Liquidity fell significantly.  

The first session of the week saw bluechips fall, including BVH, MSN, PVS, and PVD, putting pressure on the VN-Index. We believe that the VN-Index will move around the 685 (+/-10 points) mark over the next one or two weeks. Tomorrow it will continue around the resistance level of 675-680 points and recover at the end of day. There is risk in short-term trading, and investors should be calm and hold good stocks. High risk investors may buy in for the correlation price.

Maritime Securities Incorporation

The market was positive during the first hour of trade this morning but a correction was then seen. Most shares corrected and large caps cut the index by 6 points, including BVH, VCB, GAS, VNM, MSN, and MWG. Most market sectors fell, with positives maintained in seafood, minerals and pharmaceuticals. At the close for the day the VN-Index was quite close to its short-term support level of 680 points, reaching 680.95 points, down 6.05 points or 0.88 per cent against last week’s close.

The market is entering some volatility and supply pressure on large caps is affecting overall market trends. The market may test the support level of 680 points tomorrow or even the 675-point mark. Investors should limit trade in small caps and be cautious if the index slips under 680 points.

BIDV Securities

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