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Bulltrap catches traders during afternoon session
Shares retreated in the afternoon session on the HCM City Stock Exchange May 22, creating a bull trap as increasingly cautious investors began to unload shares.
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Source: VietstockFinance
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By the end of the trading day, the VN-Index had closed at 447.94 points, a decline of 0.02 per cent from Monday's close after gaining as much as 1 per cent in the morning session.
Driven by the boost is sales, the value of trades rose 25 per cent over Monday's level to over VND1.5 trillion (US$72.7 million), while the volume of trades rose 12 per cent to over 84.4 million shares.
Newly-listed PV Gas (GAS), the market's second-leading share by capitalisation, managed to rise to its ceiling price, gaining 5 per cent, but GAS failed to rescure the Index.
Half of the market's top 30 shares by capitalisation and liquidity lost value, including Vietcombank (VCB), insurer Bao Viet Holdings (BVH) and food processor Masan Group (MSN), all declining by 1.8-2.9 per cent. The VN30 Index accordingly sank by 0.39 per cent to close at 516.86.
Tan Tao Investment Industry (ITA), with 4.5 million shares traded, was the most-active share, finishing up 4 per cent to VND7,900.
On the Ha Noi Stock Exchange, the HNX-Index also lost 0.49 per cent to close at 76.46 points after shares gained during the morning session. Decliners edged advancers by 141-125. Increased selling pushed the trading value up 34 per cent to VND610.2 billion ($29 million) on a volume of 58.7 million shares.
VNDirect Securities (VND) rose in the afternoon to be the most-active share with 4.6 million traded, but slid by 0.8 per cent to a close of VND12,500 per share.
According to FPT Securities Co analysts, yesterday's correction seemed to offset Monday's excessive reaction to the end of the market's eight-day losing streak, a shift that was unconvincing due to the absence of supporting economic news. The Government had yet to approve a reduction in petrol prices while negative credit growth in April continued to suggest economic stagnation, they wrote in a research note.
However, analysts from other firms expected a continued easing of inflation in May and pointed to the successful debut of PetroVietnam Gas (GAS) on Monday as well as the opening of the National Assembly, which was expected to pass a stimulus package for the business community – all likely to support the market in the near future.
Foreign investors were net buyers on both exchnages yesterday, picking up shares worth a combined net of VND93 billion ($4.4 million).
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