Bottom-fishing momentum aids VN-Index recovery

A spike in bottom-fishing helped many stocks recover at the end of the Tuesday session, pushing VN-Index up 14.57 points to close at 1,233.38.

All indexes dropped below the reference milestone in the early morning due to strong selling pressure over large stocks. VN-Index rebounded at the end of the morning session owing to the recovery of some large stocks like MSN (Masan Group), VCB (Vietcombank), VNM (Vinamilk), and GAS (PV Gas).

The tremors persisted in the afternoon as midcap and penny stocks were heavily dumped. However, the green coverage prevailed in the VN30 basket and substantial bottom-fishing assisted the main index climb dramatically at the end of the session.

Twenty six stocks in the VN30 basket, which tracks the price of 30 leading stocks in terms of market cap and liquidity on the Ho Chi Minh Stock Exchange (HoSE), were gainers. This was led by STB (Sacombank) which hit the ceiling price, among other gainers like SSI, MSN, CTG, VNM, PNJ, and TPB.

In the opposite direction, HPG (Hoa Phat Group) experienced the biggest loss, losing 5% of its value, and even hitting the floor once. This came after Hoa Phat Chairman Tran Dinh Long's statement about the steel industry's difficulties at the company's annual general meeting on Tuesday.

VN30-Index closed the session at 1,272.71, up 17.36 points. Liquidity reached VND5,714 billion ($246.2 million), accounting for 42.5% of HoSE liquidity.

Small and medium stocks also recovered with VNSmallCap and VNMidcap up 0.61% and 1.3% respectively.

VN-Index closed Tuesday at 1,233.38, up 14.57 points, with 224 gaining (six stocks hit the price ceiling) and 210 losing. HNX-Index climbed by 5.3 points (1.76%) to 305.96, while UpCoM-Index slightly dropped by 0.51 points (0.54%) to 93.12.

On the three exchanges, 418 stocks were gainers (21 stocks hit the price ceiling) and 465 losers, with total transaction value at VND16,158 billion ($696.2 million).

The green extended its coverage in banking, securities, real estate, and construction groups, contributing to strengthening the index's bullish streak.

Meanwhile, all steel stocks plummeted in the afternoon session following Hoa Phat leader’s comments. Of this, the three largest stocks HPG (Hoa Phat Group), NKG (Nam Kim Steel), and HSG (Hoa Sen Group) all dropped to the floor at one time and closed the session down more than 4.5%.

Foreign investors reversed to a net buying of VND224 billion ($9.65 million) on HoSE, following the three consecutive net selling sessions. The buying force focused on DCM (Ca Mau Fertilizer), DPM (Petrovietnam Fertilizer & Chemicals), and STB (Sacombank).