March 5: Vietnam Stocks Limit Up Across the Board on Distress Buying

The benchmark VN Index ended the day with a gain of 17.61 points or 4% to 457.21, a bit lower than the morning session close of 458.05. Volume rose 26.48% to 103.34 million shares were changed hands for VND1.982 trillion as a part of extended trading hours.

Today was the first day that both two local bourses launched their afternoon trading hours. The market will close at 14:15 instead.

After strong performance in the morning, the trading pace slowed down a bit in the afternoon as many sellers stayed on the sidelines succumbing to extreme aggressive buying interest. Stock, from heavy weighs to pennies soared across the board, many stock limited up with blank on the offer quote.  

VN30 gained 21.4 points or 4.25% to stand at 524.94. Volume was 29.56 million worth of VND720.47 billion.

The market breadth was positive. Among 308 listed firms on HOSE, gainers outpaced losers by 288-15 and 5 stocks unchanged of which 249 hit upper limit and only 4 hit lower limit.

Market sentiment was very bullish and investors accepted to chase prices higher. World media recently posted many articles saying Vietnam is a good bet that helped boost local sentiment too. The local government also prioritizes to develop stock market and the Prime Minister has approved local stock market development strategy in 2011-2020.

Vietnam Export Import Commercial Joint Stock Bank (EIB) was the most active stock with 8.1 million shares traded, closing at the upper limit of VND20,400.

Ocean Group JSC. (OGC) was the second most active one with 4.37 million shares and Vietnam Joint Stock Commercial Bank for Industry and Trade  or Vietinbank (CTG) was in the third place with 2.63 million shares traded, both limited up.

Foreigners turned to be net sellers today, of note they offloaded 12,582,094 HAG shares for VND377,792,820 in the put through deals.

On the Hanoi Stock Exchange, the HNX closed up 4.06 points or 5.66% to 75.78. Trading was 31.76 million shares traded for VND479.3 billion. Volume in the Hanoi Stock Exchange fell as a result of sellers’ absence.

Market breadth was broadly positive with 353 gainers, 36 losers and 6 flat issues of which 309 shares limited up while 10 hit the floor.

Among most active stocks today, Asia Commercial Bank (ACB) was the new name, taking the second most active one with 2.2 million shares traded. After STB, HBB, SHB, EIB, investors today accepted to buy ACB at the ceiling price and sending the share to be one of the most active stocks today.