Liquidity Surge Propels Inflows into Equity Markets

A drop of more than 100 points in the VN-Index during the week of April 15-19 triggered a cash flow into the market. In particular, the group of stock brokerage stocks attracted strong money.

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The stock market has just experienced a week of sharp decline in terms of points. From April 15 to 19, the VN-Index fell 8% to 1,174.85 points, while the HNX-Index fell 8.5% to 220.8 points.

Despite the major shock, market liquidity has turned very positive with trading value and volume increasing by 40 – 50% on the two listed exchanges, HOSE and HNX. Specifically, the trading volume of HOSE floor increased by over 50%, reaching nearly 1.2 billion units/session. Trading value accordingly increased by 40% to 26.6 trillion VND/session.

On the HNX floor, the trading volume last week reached more than 130 million units/session, an increase of 55%. Meanwhile, trading value increased by 50% to 2.6 trillion VND/session.

Table: Overview of Liquidity in the Week of April 15 – 19

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Chart: Liquidity

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Market liquidity increased sharply, the first group of stocks that money flow paid attention to. Many stock stocks recorded positive liquidity compared to the previous week.

BSI, CTS, APS, IPA, MBS, EVS, SHS, VIG all had trading volume surged by over 100% compared to the previous week. However, the prices of these stocks all suffered heavy losses along with the general market situation. Stocks in the brokerage group all recorded double-digit price declines.

Along with the brokerage group, the money flow also paid attention to some real estate stocks. TDH, NRC, IDJ, CEO… were among the group with strong liquidity increases last week.

Meanwhile, construction was slightly withdrawn. Some construction stocks such as KPF, TV2, C47, S99, C69, TA9… appeared in the group with the largest liquidity decline on the two exchanges.

Table: Top 20 Stocks with the Highest Liquidity Increase/Decrease on HOSE

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Chart: Liquidity on HOSE

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Table: Top 20 Stocks with the Highest Liquidity Increase/Decrease on HNX

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Chart: Liquidity on HNX

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Note: List of stocks with the highest increase/decrease in liquidity compared to the average trading volume of over 100,000 units/session.

Chi Kien