Local shares continue upward trend
Local shares continue upward trend
Vietnamese shares extended a rally yesterday on both local markets as banks continued to benefit from foreign purchases.
The benchmark VN Index on the HCM Stock Exchange gained 0.6 per cent to close at 579.45 points, extending a rally of 2.7 per cent for a fifth day. The index has risen 6.2 per cent so far this year.
The HNX Index on the Ha Noi Stock Exchange added 0.9 per cent to finish at 79.28 points. The northern index has gained 1.9 per cent for the last two days. The index has fallen 4.5 per cent so far this year.
The banking sector index was up 1.1 per cent after foreign investors recorded net buy values for bank stocks.
Vietcombank (VCB) rose 0.7 per cent, Vietinbank (CTG) gained 0.5 per cent and Sai Gon Ha Noi Bank (SHB) jumped 3.3 per cent. Inflows from foreign investors occupied half of traded shares in these stocks.
Meanwhile, Sacombank (STB) jumped 5 per cent and the Bank for Investment and Development of Viet Nam (BID) gained 0.5 per cent as foreign purchases accounted for up to 20 per cent of traded shares in these stocks.
Other big stocks such as Vingroup JSC (VIC), Sai Gon Ha Noi Securities Incorporate (SSI) and Kinh Bac City Development Holdings Corporation (KBC) also contributed to the market rally. These stocks added 1.1 per cent, 0.5 per cent and 2.3 per cent, respectively.
In addition, a stronger Vietnamese dong helped local companies such as construction material producers, IT companies and rubber firms to reduce their input costs, which come from importing materials from overseas suppliers.
The official exchange rate was VND22,500 per US dollar at local banks yesterday, a decrease of VND10 from the previous day, and VND22,630 a dollar in the unofficial market, a decrease of VND50.
Local firms that benefited stronger dong included internet, computer and software provider CMC Corporation (CMG), which jumped 4.3 per cent, Da Nang Rubber Joint Stock Company (DRC), which rose 1.9 per cent, and steel maker Hoa Phat Group JSC (HPG), which gained 1.4 per cent.
Both local markets traded more than 138 million shares worth VND2 trillion (US$88.4 million), a decrease of 14 per cent from Tuesday's trading value.
