Shares rally despite ETF transactions

Investors monitor share movements at a VNDirect Securities Co trading floor in Hà Nội. - VNA/VNS Photo Tuấn Anh

According to BIDV Securities JSC (BSC), domestic buying demand absorbed most shares sold by foreign traders. As a result, the index recorded a week of rallying and surpassing its previous peak of 1,130. Thus, the index is expected to extend gains next week.

The HNX Index on Ha Noi Stock Exchange (HNX) rose 1.38 per cent to end at 133.10 points, expanding its five-day rally to 4.26 per cent.

More than 388.51 million shares, worth VNĐ12.2 trillion (US$534 million), were traded on the two local bourses. BSC said liquidity surged thanks to the trade of the exchange-traded funds (ETFs).

Market breadth was positive with 252 gaining shares, 234 declining ones and 248 stocks ending flat.

The UPCoM Index on the Unlisted Public Company Market gained 0.35 per cent to stand at 61.80 points, a three-day increase of 0.88 per cent.

Foreign investors today were net sellers of VNĐ1101.32 billion on HOSE, concentrated on steel producer Hòa Phát Group JSC (HPG) (VNĐ248.4 billion), Vietcombank (VCB) (VNĐ168.2 billion) and property developer Vingroup (VIC) (VNĐ168.2 billion). In addition, they bought a net of VNĐ8.57 billion on the HNX.

Friday was the final day for the two exchange-traded funds, FTSE ETF and the V.N.M ETF, to restructure their portfolios.

According to Viet Dragon Securities Co (VDSC), although Vincom Retail Joint Stock Company (VRE) was bought by both ETFs, the stock price stayed below its reference level.

Foreign investors bought 25.2 million VRE shares, but they also sold 21.3 million, VDSC said.

In addition to VRE, the FTSE Việt Nam ETF also bought Hoàng Huy Investment Financial Services JSC (TCH) and Phát Đạt Real Estate Development Joint Stock Company (PDR). Only TCH closed in the green. VRE and PDR declined by 1.5 per cent and 1.8 per cent, respectively.

After being removed from the FTSE ETF portfolio, GTN fell by 3.1 per cent. SAB closed near its ceiling up 6.8 per cent, following the news that Dragon Capital bought 15.3 million shares, equivalent to a 2.3 per cent stake of the giant beer company.

GAS, VNM, and banking stocks (BID, VCB and VPB) were among the top drivers for the VNIndex.

“Given the current high liquidity of the market, it is normal that impacts from ETF transactions were not so significant,” VDSC said in its daily report. “Considering the current strong inflows, we believe the VNIndex is on the right track to surpass its all-time high of 1,170 with banking, real estate and brokerage stocks continuing to be the leaders. The F&B sector is also well worth considering,” it added.