Strong purchase drives shares up
Strong purchase drives shares up
Vietnamese shares posted a strong comeback on Friday following Thursday’s slump, thanks to strong cash flow which poured into the blue-chips, especially during the ATC session.
The benchmark VN-Index on the HCM Stock Exchange (HOSE) gained 2.49 per cent to close at 1,102.85 points. It had dropped 1.02 per cent to finish at 1,076.03 points on Thursday.
The HNX Index on the Ha Noi Stock Exchange (HNX) rose 1.24 per cent to end at 126.24 points. The index had edged down 0.92 per cent to end the session at 124.70 points on Thursday.
The UPCOM Index on the Unlisted Public Company Market (UPCoM) inched up 0.43 per cent to finish at 59.56 points. It lost 0.15 per cent to finish at 59.28 points in the previous session.
More than 247.69 million shares were traded on the three local exchanges, worth VND7.1 trillion (US$311.9 million).
Financial-banking and oil stocks were the best-performing among the 20 sectors in the stock market, with the banking and energy industry indices jumping 4.35 per cent and 4.88 per cent, respectively, according to vietstock.vn.
Market trading conditions turned positive on Friday, with 419 gaining stocks against 232 decliners, while 794 other stocks remained unchanged.
Large-cap stocks also had a good trading day, as 29 of the 30 largest shares by market capitalisation advanced in the VN30 Index.
The VN30 Index was up 2.81 per cent to 1,034.76 points, with more than 60 million shares exchanged, worth VND3.03 trillion.
Blue chip stocks were in strong demand and pulled up the VN-Index, as well as the VN30, especially in the ATC session. Banking (MBB, CTG increasing and VCB reaching the ceiling price) and petroleum (PVS, GAS increasing and PVD reaching the ceiling price) were the largest contributing sectors.
Foreign investors were net sellers of VND258.26 billion on HOSE, focusing on HPG (VND126.8 billion), VCB (VND47.2 billion) and BID (VND23.5 billion). In addition, they also sold a net of VND50.09 billion on the HNX.
As the State Capital Investment Corporation (SCIC) has recently announced its plan to divest capital at the Binh Minh Plastics Joint Stock Company (BMP), the sector-leading shares of the plastic producer immediately saw a strong rally, gaining 4.6 per cent and contributing to driving up the market.
In addition, NTP climbed 2.49 per cent on Friday’s trading session due to investors’ expectations about SCIC executing similar offerings of NTP shares.
According to Bao Viet Securities Company (BVSC), the positive effect of the divestment is expected to continue boosting BMP shares in the coming sessions.
“Large-cap stocks will likely extend gains early next week, supporting the overall market. However, the market may experience some volatility when VnIndex approaches the old peak,” BVSC said in its daily report.
According to BIDV Securities Co (BSC), investors may consider increasing their stock proportion in the pillar stocks of the market, because these stocks are attracting major cash flows in the market.
