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Low liquidity in VN30 curbs increase

Released at: 17:51, 16/12/2015 Stock Market Watch

Low liquidity in VN30 curbs increase

Slow trade in large caps offsets promising increases elsewhere in market on December 16.

by Hung Khanh

The VN-Index twice reached the 575-point mark on December 16, late in the morning and the beginning of the afternoon session, before closing at 574.63 points in the morning then slipping to 572.55 at the end of the afternoon, for a gain of 4.55 points, or 0.8 per cent, overall. The market saw VND1.6 trillion ($71 million) worth of shares traded via order matching and VND856 billion ($37.98 million) via put through, for a total of VND2.5 trillion ($110.95 million); the highest for eight days.

The VN30-Index led the market upwards this morning but only continued on the same trajectory for the first 30 minutes in the afternoon before heading down to its opening position. In the morning it saw 21 shares increasing and five decreasing, while only 12 increased and eight fell in the afternoon.

It closed the day 1.69 points higher but lost almost 2 points in the afternoon session. Liquidity was low, with only some 24 million shares changing hands, valued at around VND591 billion ($26.22 million). The highest increase was recorded by PNJ, of 2.87 per cent, but on trade of just 50,000 shares. Some large caps on the VN-30 rose slightly over the course of the day, such as FPT, by 0.62 per cent, VCB 0.69 per cent, and VNM 1.59 per cent, while others fell, such as SSI, by 0.87 per cent, HPG 0.33 per cent, DPM 0.63 per cent, MSN 0.72 per cent, and KDC 4.41 per cent. Small and medium caps were solid in both liquidity and price, with IJC increasing 1.41 per cent (on 5.8 million shares traded), SBT 0.52 per cent (2.8 million shares), and ITA 1.72 per cent (1.72 million shares). Blue chips clearly hampered the increase in the VN30-Index today.

Foreign investors saw strong net selling of VND 192 billion ($8.52 million), with strongest net buying being in KDH, of some VND39 billion ($1.73 million).

BID was the sold the most by foreign investors, with net selling of some VND101 billion ($4.48 million). Market rumors claimed that VNM funds were behind the strong selling, as the funds had mistakenly purchased 5.7 million BID shares previously. If this is true, the mistaken purchases have now been completely sold. Buyers of BID seemed prepared, with orders being high. It closed today up 3 per cent, ending five consecutive days of decline or no change.

Foreign investors also exited BVH, IJC, DPM, MSN, PVD, CSM, VIC, NT2, and SSI in large volumes.

The total order matching in both markets saw foreign investors net sell VND225.4 billion (10 million); the highest for five days.

The HNX-Index also saw a fall in the afternoon, closing 0.44 per cent lower than at opening but increasing 0.33 per cent during the day. The HNX30-Index fell 0.53 per cent against the morning session, which rose 0.5 per cent. Large caps can be apportioned some blame, with PVS increasing just 0.58 per cent, SHB closing at its opening price after increasing 1.59 per cent in the morning, and ACB losing all of its gains from the morning session.

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