An investor opens an account for stock trading at MBS Securities in Hanoi (Photo: VNA)Hanoi (VNS/VNA) - Shares rebounded on April 18 as bargain hunting increased oninvestor expectation that the market will get back on the track soon.
The VN-Index recouped 0.58 percentto close the afternoon trade at 714.93 points on the HCM Stock Exchange.
The key market index has lost morethan 2.8 percent in the last four sessions. Its growth has also slowed fromnearly 10 percent in mid last week to roughly seven percent on April 17.
On the Hanoi Stock Exchange, theHNX-Index edged up 0.94 percent to end at 89.12 points. The northern marketindex decreased 1.9 percent in the two previous sessions.
“The strong recovery of the VN-Indexin the last trading minutes surprised the market today,” said Tran Hai Yen, astock analyst at Bao Viet Securities Company, in April 8’s market report.
Demand rose in the second half ofafternoon trading, lifting many large-cap stocks including Vinamilk (VNM),insurer Bao Viet Holdings (BVH), Vietinbank (CTG), Vietcombank (VCB), privateequity firm Masan Group (MSN), IT giant FPT Group (FPT) and PV Gas (GAS).
“Today’s strong growth is a goodsignal for tomorrow’s trading. We expect another rally but not significantgiven short-term risks from global turbulence,” analysts at Vietnam InvestmentSecurities Company wrote in a report.
Money flow is strong and awaiting asuitable time to return to the market with other investment channels lessattractive, the report said, indicating a rise in liquidity on April 18.
A total of 258.3 million sharesworth a combined 5.2 trillion VND (228 million USD) were traded in the twomarkets, up nine percent in volume and six percent in value compared to April17’s figures.
“However, it is too early to assumea sustainable bullish trend when objective information concerning geopoliticalissues, especially the Democratic People’s Republic of Korea issue, stillcontain numerous potential risks,” Yen said.
She advised investors to avoidaggressive buying and reducing stock exposure of overall portfolios.
Fertiliser companies filed anapplication to the Ministry of Industry and Trade (MoIT) for a safeguard tariffon a number of imported fertiliser products but this information did little forfertiliser firms.
PetroVietnam Fertiliser &Chemicals (DPM) and PetroVietnam Ca Mau Fertiliser (DCM) rallied but Binh DienFertiliser (BFC) and Lam Thao Fertilisers and Chemicals (LAS) declined.
There has been no final decisionfrom the MoIT. However, if this request is approved, the performance of localfertiliser companies is expected to improve, as steel stocks did last year.-VNA
VNA
