Oct 21: Vietnam stocks rebound on cpi news and hopes of petrol price cut

Vietnamese stocks rebounded today as investors jumped in on easing inflation and on rumor that petrol prices will be cut.

The benchmark VN Index added 7.3 points, or 1.8%, to end at 411.03. Volume rose 75.3% to 32.6 million shares worth VND547.6 billion including 10.1 million shares worth VND158.6 billion changed hands in the put-through deals.

The market got a jolt from CPI announcements in two big cities: Hanoi +0.13% and HCM City + 0.18%, lowest monthly rises in multi-months, suggesting the country‘s inflation further ease in October.

Besides, we heard rumors that Vietnam will cut petrol prices very soon. If this is true, it will help the country’s reach target of curbing inflation at 18% this year and was a good reasons for stock market to rally after recent poor performance. However, it is just the rumor and banks’ liquidity is still a real concern.

Local forex market continued to show some tension and the midpoint official exchange rate was raised by VND10 to VND20,748 today, up 0.59% in the month to date, and currently at the fresh all time high. Local gold prices stayed firm despite global market fall yesterday, therefore, gold premium rose again.

Back to the market, VN Index opened in the green with 0.4 million shares traded. Though both buyers and sellers were cautious, market kept the heat up and buyers became more aggressive from 9:40 today, boosting the prices gradually up throughout the trading session and ended the day at the peak with broad gain.

Market breadth today was positive, among 302 listed firms on HOSE, gainers outweighed losers by 170-65 and 55 stocks unchanged and the rest untraded. As many as 24 stocks fell to the floor while 43 issues hit the ceiling, 5% each side. Among top 10 market caps, 7 rose (MSN, BVH, VIC, CTG, VNM, VCB, HAG) , 3 fell (STB, VPL, EIB).

Tan Tao Investment – Industry Corporation (ITA) was the most active stock with 2 million shares traded, closing up 4.5% to VND9,300.

Ocean Group JSC. (OGC) was in the second place with 1.4 million shares traded, closing up 3.5% to VND11,900.

Hoang Quan Consulting – Trading – Service Real Estate Corporation (HQC) ranked third with 1.1 million shares traded, closing up 4% to VND10,500.

Licogi 16 JSC. (LCG) stayed in the fourth place with 0.8 million shares traded, closing up 2.5% to VND12,300.

Saigon Thuong Tin Commercial Joint Stock Bank or Sacombank (STB) was in the last in the most active list with 0.7 million shares traded, closing down 0.8% to VND13,100.

On the Hanoi Stock Exchange, the HNX bucked trend to close up 1.41 point or 2.08% to close at 69.13. Trading volume rose 110% to 40 million shares traded for VND360.5 billion of which 6.4 million shares worth VND43.2 billion were changed hands in put-through deals.

Market breadth was positive with 197 gainers, 66 losers and 46 flat issues and 84 untraded. Among top 10 market caps, 6 gained, 4 unchanged.

Kim Long Securities JSC (KLS) was the most active stock with 3 million shares traded, closing up 2% to VND10,300 on average.

VNDIRECT Securities Corporation (VND) came second with 2.8 million shares traded, closing up 3% to VND10,400 on average.

Wall Street Securities JSC (WSS) ranked third in the list with 2.1 million shares traded, closing up 6.1% to VND5,200 on average.
Source Scarlet D./ Analyst / StoxPlus

Tags: vietnam stock, Vietnam stock market, VNindex