Small-cap Stocks in Focus

The supply to the Ho Chi Minh Stock Exchange (HOSE) and the Hanoi Stock Exchange (HNX) increased significantly following the seven new listings, namely VNL (Vinalink on August 17), PHR (Phuoc Hoa Rubber on August 18), DIG (DIC Corp on August 18), BKC (Bac Kan Minerals Corp on August 18), DAD (Danang Education Development and Investment Joint Stock Company on August 19), PVX (PetroVietnam Construction Corp on August 19) and SED (Phuong Nam Education Investment and Development Joint Stock Company on August 19). According to specialists, the supply increase together with the intention of “catching the bottom” will affect the VN-Index in the coming time. However, the current focus is small-cap stocks.

Blue-chips were sold for profit-taking, sending the VN-Index down 6.91 points to 500.08 on August 17. Trading volume plunged to 45.755 million shares valued at VND1,789.22 billion.

 

On August 18, the VN-Index lost its 500-point benchmark after sliding 0.39 points to 499.69 points. Investors began to purchase on speculations of quick rebound. Several stocks like GMD, KDC, LCG, VNS, VHC, VKP, PET and PIT suddenly surged to ceiling prices after being traded around reference prices. Steel shares like VIS, HSG, HLA and SMC also surged. This force trimmed the fall of the VN-Index.

 

The sudden rebound on August 19 sent the VN-Index up nearly 9 points in the last minutes. The gauge added 5.31 points to 505 at the firs of the three-session trading day. The demand from the second session pushed the VN-Index up 8.77 points, or 1.76%, to settle at 508.46. Trading volume reached 46.8 million shares valued at VND1,843.28 billion.

 

The money flow suddenly shifted to blue-chips. SSI gained VND1,500 to close at VND70,500 per share after being traded at VND69,000. STB climbed VND300 to VND38,200 per share. VCB, BVH and CTG ended unchanged while DPM, PVF and FPT made slight gains. Small-cap stocks were hunted by investors. Oil and steel stocks soared. PVD leapt VND3,000 to VND84,000 per share, HPG rose VND2,000 and SMC, HLA and HSG were also traded at their highest intraday prices, which are capped at 5 % from the reference price. PNJ unexpected surged to the ceiling price at VND90,000 per share.

 

On August 20, both the buy-side and the sell-side were satisfied. The sell-side wanted to take profits when the VN-Index moved to the sentimental resistance of 512 points, the highest recorded in 2009, the buy-side still selectively picked up desired stocks on hopes of continued uptrend.

 

More than 62 million shares were changed hands at over VND2,200 billion. The market saw 101 stocks close up, including 47 stocks settling at their highest intraday prices, led by VNM and GMD. Declining GMD was hunted after the company posted a net profit of VND114 billion in the second quarter. Meanwhile, VNM surged to VND155,000 per share after the company’s board of directors announced the profit and approved the plan to issue bonus shares at an exercise ratio of 1:1 (shareholders will receive one new share for every one share they hold).

 

Holders of blue-chips were like sitting on a hot span as small-caps like DQC, GMC, GTA, PGC and PIT advanced to their ceiling prices while heavyweights like STB, SAM and PVF slid and HPG, REE and SSI closed unchanged.

On August 17, the HNX-Index swung between gains and losses before sliding 1.36 points, or 0.87 %, to 155.82. Penny stocks like EBS, STL, SD5 and NBP continued being traded at their ceiling prices. Particularly, STL was traded at ceiling prices for six consecutive days. The market volume totalled 19.83 million units worth VND654 billion.

 

On August 18, the HNX-Index added 0.59 points, or 0.38 %, to close at 156.41, ending its two-day decline. Blue-chips slid, except for advancing VCG and KBC. KBC continued being traded at its ceiling price of VND39,100 while VCG added VND1,000 to finish at VND30,000. The two heavyweight stocks led the market liquidity with 3.34 million shares and 2.02 million shares respectively. Small-cap stocks like BLF, DXP, KKC, NLC, NBP, SIC, SSM, STL, SEB, SDP and VGS continued surging.

 

On August 19, the HNX-Index rose 2.54 points, or 1.62 %, to end at 158.95. KBC led the upswing when it climbed to VND40,900 per share. The buy-side placed bids for 1.76 million units at the ceiling price but they were unmatched. Other big stocks rose but with slight gains. PVS increased VND1,300, VCG (VND800), PVI (VND700), SHB (VND300), and ACB (VND200). Many small-cap stocks joined the growing group, including VC2, PVA and PVG. The market trading volume reached 25 million units valued at VND782 billion.

 

On August 20, the HNX-Index gained 1.52 points, or 0.96 %, to close at 160.47. The focus was turned on newly-listed PVX and VCG, which were traded at the ceiling prices and closed with 2.5 million and 1.3 million shares untraded at ceiling prices. KBC added VND2,700, or 6.6 %, to VND43,600, extending its winning streak to three days. This stock led the market liquidity with nearly 3.57 million shares changed hands. The market trading volume was 27.7 million units worth VND956 billion.