April 20: VN Index rebounds, blue chips lead

Vietnam’s stocks rebounded today with support from blue chips and foreign buying after hitting multi-month key support at 455 yesterday, market gave muted response to CPI data.

The benchmark VN Index gained 4.76 points or 1.04% to 458.5. Volume continued to fall to 21.04 million shares traded for VND453.65 billion of which 4.5 million shares changed hands in the put-through deals.

Traders believed some big boys stepped in today.

The Ho Chi Minh City April CPI came out at 3.16% while that of Hanoi rose 3.28%, Long An province at 5.46%, suggesting the country’s figure to stay high. However, market rare reacted to the news as the fears have been priced in.

Headlines showed that the Ministry of Finance(MoF) has proposed to remove income tax on dividend and share transfer tax. It also asked for raising minimum level of income taxed. This certainly a good news for stock market amid not-yet-to improve economic conditions.

The EVN has completed plans to divest in Vinaphone and MobiFone to submit for approval, however, details were not yet available.

In related news, local gold on April 20 continued to soar, heading to VND37.5 million, trading in a range of VND37.43 million-VND37.48 million a tael as global gold prices continued to hit new lifetime record of $1,501.40 an ounce. The dong rose VND5 to VND20,935 a dollar at Vietcombank after hitting all time low of VND20,940 yesterday.

The market opened in the green with 0.7 million shares changed hands. Trading was still sluggish but the index move north as market progressed. Strong performance of almost all blue chips buoyed the market and helped the benchmark regained 455 support. The market closed at the high of the day.

The market breadth improved but still negative, losers outpaced gainers by a ratio of 135 to 86 and 68 stocks unchanged. The number of floor losers also dropped to 19 while 13 stocks gained 5% cap.

Blue chips were stronger than the market, BVH, CTG, DPM, KBC, MSN,PVF, SSI, VCB, VIC, and VNM all posted gains.

Analysts see bottom is near but they don’t believe a sustainable rally in short term.

Top active issues saw sluggish performances, all traded under 1 million shares as caution is still in place.

EIB was the most active stock with 0.8 million shares traded, closing flat at VND14,600.

SSI ranked second in the list with 0.7 million shares traded, closing up 1% to VND20,300.

ITA was in the third place with 0.6 million shares traded, closing down 0.8% to VND12,900.

VCB and HAG followed in the list with 0.5 million shares traded each.

On the Hanoi Stock Exchange, the HNX fell 0.16 point or 0.18% to finish at 86 points. Volume fell to 18.3 million shares traded for VND235.41 billion compared with 22 million shares traded for VND298.18 billion yesterday. Losers outnumbered gainers by 167-100.

Analysts see the next support at 85.

KLS was the most active stock on the bourse with 2.6 million shares traded, closing up 3.2% to VND9,700 on average.

THV ranked second in the list with 1.2 million shares traded, closing down 0.9% to VND10,400.

VND was in the third place with 1.2 million shares traded, closing up 1.4% to VND14,100 – Stoxplus.com

Tags: vietnam stock, Vietnam stock market, VNindex