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Stocks jump to near 480 pointsThe market staged a strong rally again on Monday on the hope that interest rates may be cut soon and strong foreign interest. However, the four-day rising streak may not sustain as selling pressure picked up at the end of the day.

Strong opening on blue-chips saw the market taking off soon in the first session of the week. At some point during the day, the VN-Index gained as much as 17 points, led by heavyweights VNM, MSN, BVH and GAS.

GAS was at the ceiling price almost throughout the session. However, selling pressure as the closing bell rang surprisingly sent the ticker back to a mild 1.6% gain. That left only BVH at the limit up position. Consequently, the insurance sector took the market leader position at 6% advancement.

VNM and MSN, on the other hand, contributed the most points to the VN-Index with 4.5 points. At the close, the index gained 11.51 points, or 2.46%, from the session earlier to close at 479.6.

The HNX-Index, on the back of optimism from the main index, also gained 0.9 point, or 1.48%, to 62.52.

Overall turnover improved 28% on both bourses, with the steep rise seen towards the end of the session. Notably, the majority of trades was order matching.

In combination with many tickers giving back the early gains, it did look like investors were taking profits, especially on the blue-chips which sent the VN-Index from the 17- point intraday gain to just 11.51 points at the close, Viet Capital Securities Company (VCSC) commented in its report on Monday.

Foreigners, though slowing down to just 80% of last Friday’s net buying value, continued to extend the buying streak to the 25th consecutive day.

VCSC said that the VN-Index seemed to have easily broken above the 470 resistance level, much faster and more easily than it had thought, and maybe investors should be worrying about the new resistance level at 490 points.

HCMC Securities Corp. (HSC) said that the market continued to rally on speculation that further interest cuts are in the works following comments by the Prime Minister after last Friday’s meeting with economists.

Then the market remained excited by the prospect that draft documents to lift foreign ownership limits and provide a detailed operating framework for the Vietnam Asset Management Company are at a very advanced stage, meaning that final approvals for both should not be long, it said

Aided by wider trading bands and strong support from foreign investors in recent days, the market has seen resurgence. While margin positions and cash deposits have begun to rise again, they are a fair bit below mid-January peaks, suggesting the recent movement since last Thursday is heavily influenced by foreigners.

“That is why blue-chips are once again in the vanguard and also why the VN-Index is up 16% year-to-date while the HNX-Index is lagging with a 10% year-to-date return. We have now blown past the 470-point resistance level on the VN-Index and our technical analysts’ tells is that the next resistance level is 490 points in short term and then beyond that is 528 points,” HSC added.

(Sai Gon Times)

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