Foreign investment helps market
Foreign investment helps market
Viet Nam’s key VN Index extended growth for a second day yesterday as bank stocks were boosted by strong foreign investment.
The benchmark index on the HCM Stock Exchange gained 0.30 per cent to close at 724.31 points. It has advanced total 0.8 per cent after the last two sessions.
Market trading liquidity remained stable with more than 228 million shares traded, worth VND4.52 trillion (US$201.2 million). The figures were almost unchanged in comparison with Tuesday’s numbers.
Foreign investors posted a net buy value of VND87.6 billion, which was a big improvement compared to the net foreign sell value of VND81.5 billion made on Tuesday.
Foreign investment yesterday focussed on the banking industry, making it the strongest growing industry among 20 sectors in the stock market with the sector index gaining 1.5 per cent, according to vietstock.vn.
According to Sai Gon-Ha Noi Securities (SHS), there were two bank stocks in the top five that received net foreign buy values, which were Sacombank (STB) and Vietcombank (VCB).
The Bank for Investment and Development of Viet Nam (BID) and Eximbank (EIB) were also attractive to foreign investors.
STB and BID posted the biggest gains among banks listed on the southern bourse, with growth rates of 4.2 per cent and 3 per cent. VCB and EIB edged up 0.8 per cent and 0.4 per cent, respectively.
Listed banks have recorded positive earnings in the first quarter of 2017. First-quarter post-tax profits of Vietcombank, BIDV and Sacombank were VND2.2 trillion, VND2.04 trillion and VND210 billion, year-on-year increases of 20 per cent, 5.8 per cent and 30 per cent, respectively.
Other sectors such as rubber producers, energy firms and food and beverage companies also performed well.
Among those companies, energy stocks were lifted by rising oil prices after OPEC members and other exporters have struggled to cut production, extending the output curb agreement to the end of this year. Brent crude rose 1 per cent to trade at $49.22 a barrel.
Property stocks remained positive with the growth of Novaland (NVL), Hoang Quan Consulting-Trading-Service Real Estate (HQC), Kinh Bac City Development Holding (KBC) and Sai Gon Thuong Tin Real Estate (SCR).
HQC and SCR were the two most active stocks on the southern bourse with more than 14 million and 10 million shares exchanged, respectively. HQC gained 0.8 per cent while SCR surged 6.9 per cent.
