Phạm Thái
Viet Capital Securities Company (VCSC) cited two factors that sent the index down on Monday. The first reason was the cautious mood among foreign investors ahead of the U.S. Federal Reserve meeting, while secondly, exchange traded funds (ETFs) looked to have started trading for the fourth quarter rebalancing.
The VN-Index mostly stayed in the red. High-volume sell orders on HAG, HPG, VIC and VCB shares caused the index to fall even stronger during the at-the-close (ATC) phase.
The VN-Index closed the day at 502.04, down 4.02 points, or 0.79%, against the session earlier although market breadth was neutral. Turnover on the southern bourse jumped around 24% to VND1 trillion while foreigners tripled net selling amount to VND45 billion.
On the Hanoi market, the HNX-Index had an opposite ending courtesy of PVS and PVI. The duo PetroVietnam-related tickers together contributed 0.3 point, same as the number of points gained by the index as it closed up 0.27 point, or 0.42%, at 66.49.
“Massive selling pressure was seen from foreign investors, topping VND25.4 billion as it looked like the Van Eck Vietnam ETF was trying to reduce weightings on SHB while completely removing PVX from its constituent list following its fourth-quarter rebalancing results on Saturday,” VCSC commented.
Viet Dragon Securities Company said that portfolio rebalancing activities from ETFs will cause adverse impacts on both markets this week.
Last week, Van Eck Vietnam ETF announced the rebalancing results in December, eliminating PVX and adding one stock to its portfolio. Liquidity on the Hanoi market soared to VND590 billion due to strong transactions of PVX shares on Monday.
“As the ETF will sell 2.56% of its portfolio, or around VND209 billion, some tickers will see clear impacts from its activities. With our calculations, the fund will offload 34.3 million PVX shares, 11.8 million SHB shares and 1.1 million DRC shares while picking up around two million ITA shares, 908,000 DPM shares and 432,000 OGC shares this week,” the broker predicted.
“At present, there is no new information related to foreign room expansion. Thus, we expect that the VN-Index would move between 495 and 505 points this week. Investors could consider buying shares when the VN-Index drops below 500 points,” it added.
Đăng ký: VietNam News
