Feb 24: Vietnam Stocks Retreat as Traders Move to Cash

The benchmark VN Index slid 0.46 point, or 0.1% to end at 423.43. Volume rose 16.61% to 78.56 million shares worth VND1.12 trillion, including 9.8 million shares worth of VND160.69 billion changed hands in the put-through deals.

We saw 1 million HAG shares changed hands at VND27,700 each, just one line higher than yesterday close meanwhile 2.89 million ITA shares changed hands and 1.7 million STB shares traded, floor prices were seen for both in their put-through deals. Interestingly, STB closed up at the ceiling price in the order-matching market.

VN Index opened in the green with nearly 4.58 million shares traded. Market trading was fast in general as market was crowded with both buyers and sellers, liquidity soared. Sellers were aggressive, stock divergence was clearer. VN Index closed at the low of the day, and in the red, many stocks closed off their highs.

VN30, however, was still able to post a gain of 1.37 points or 0.29% to 477.77 today. Volume rose by 3.97% to 26.68 million worth of VND506.89 billion.

The broader market breadth was positive. Among 306 listed firms on HOSE, gainers outweighed losers by 156-85 and 67 stocks unchanged.

For the week, VN Index gained 20.13 points or 5%, trading volume soared to 56.96 million a day. The gauge added 71.88 points or 20.45%. Theoretically, a gain of 20% marks a bull market for some investors.

Today, GSO announced February CPI rise of 1.37%, in line with the market expectation of slightly under 1.5%, the inflation, hence fell to 16.44% in Feb versus 18.7% in 2011.

Financial stocks (property, securities, banks) were very active and outperformed, however, the rising momentum eased. Some Hanoi-based traders said they moved to cash today as their profit target reached and liquidity provided good exit. However, they believed, some stocks still have room to boost and expected stock rotation.

Military Commercial Joint Stock Bank (MBB) was the most active stock today with 7.58 million shares traded, closing up 2.2% to VND14,200.

Vietnam Export Import Commercial Joint Stock Bank (EIB) ranked second with 3.16 million shares traded, closing down 0.6% to VND16,800.

Tan Tao Investment – Industry Corporation (ITA) was in the third place with 3 million shares traded, closing up 2% to VND10,000.

Market indicator stock, Saigon Securities Inc. (SSI), came forth with 2.3 million shares traded, closing down 2.8% to VND17,500.

Other broker house, Sacombank Securities JSC. (SBS) followed with 2.3 million shares traded, closing at the ceiling price VND3,300. This was the first time SBS took its position in the top active shares. SBS share price lost 91.1% value in 2011 and gained 6.5% YTD, still lagging behind the Index.

On the Hanoi Stock Exchange, the HNX closed up 0.29 point or 0.43% to 67.07. Trading volume rose 12.38% to 86.23 million shares traded for VND736.84 billion of which 2.8 million shares worth VND44.1 billion were changed hands in put-through deals.

Market breadth was broadly positive with 200 gainers, 82 losers and 113 flat issues.

Hanoi Building Commercial Joint Stock Bank (HBB) was the most active position with 14.23 million shares changed hands, closing up 6.1% to VND5,200. This is the fifth consecutive session that HBB was in the top list of most active stocks, and roughly 60.5 million shares were traded in just 5 days. HBB has total 405 million listed shares.

PetroVietnam Construction Joint Stock Corporation (PVX) ranked second in the list with 6.7 million shares traded, closing up 2% to VND10,100 on average.

VNDIRECT Securities Corporation (VND) came third with 5.77 million shares traded, closing up 2.2% at VND9,400.