VN shares rise for a second day
VN shares rise for a second day
Vietnamese shares rose for a second session on Wednesday on both local exchanges with investors picking up stocks on expectations of future market prospects.
The benchmark VN-Index on the HCM Stock Exchange gained 0.86 per cent to close at 773.88 points.
The HNX-Index on the Ha Noi Stock Exchange increased 1.65 per cent to end at 99.43 points.
The two indices advanced nearly 1 per cent each on Tuesday.
Market trading liquidity improved with more than 281.4 million shares being traded on both local exchanges, worth VND4.45 trillion (US$197.8 million).
Wednesday’s trading figures were 20 per cent higher in trading volume and 7.1 per cent lower in trading value compared to Tuesday. However, Wednesday’s trading value remained higher than the average trading value of the previous five sessions.
The stock market was boosted by shares of property developers, financial-banking firms and energy companies.
Property and banking
Financial-banking and property stocks remained among the most attractive assets on expectations that they would release higher earnings reports for the second quarter and the first six months of the year.
In the banking sector, MBBank (MBB) ended flat, while eight other bank stocks made gains with Vietinbank (CTG), Eximbank (EIB), Sacombank (STB), Sai Gon-Ha Noi Bank (SHB) and Asia Commercial Bank (ACB) rising at least 1.3 per cent.
Other financial stocks such as brokerages and insurance firms also moved forward. Those gainers included insurance-finance group Bao Viet Holdings (BVH), Sai Gon-Ha Noi Securities (SHS), MB Securities (MBS) and Vietinbank Securities (CTS).
The property sector was lifted by Dat Xanh Real Estate Service and Construction Corp (DXG), Sacomreal JSC (SCR) and FLC Group (FLC).
Dat Xanh Real Estate Co has reported its post-tax profit after the first six months rose 64 per cent year on year to VND270 billion.
Shares of energy firms such as PetroVietnam Gas (GAS), PetroVietnam Drilling and Well Services (PVD) and PetroVietnam Technical Services (PVS) benefited from a three-day rally in oil prices. Brent crude advanced 0.5 per cent to trade at $50.48 a barrel. It had gained total 4.4 per cent in the previous three sessions.
The benchmark VN-Index has returned to its short-term upward trend with market liquidity being improved from the previous sessions, Tran Xuan Bach, an analyst at Bao Viet Securities Co, said in a note.
“There are signs that market trading volume is increasing and the market condition is positive, proving that investor sentiment is getting better as they bet on the market’s rising prospects,” he said.
However, Bach warned that profit-taking pressure may arise during Thursday’s session as the VN-Index had bounced back strongly in the last two days and the test for it would be the 775-point level.
