Markets gain as bank stocks rise again
Markets gain as bank stocks rise again
Shares rose on both local exchanges on Wednesday morning, driven by bank stocks that rose on expectations of positive earnings reports for 2016.
The benchmark VN Index on the HCM Stock Exchange and the HNX Index on the Ha Noi Stock Exchange gained 0.5 each to close at 684.38 points and 83.45 points, respectively.
The performance of the two indices was mixed on Tuesday, with the VN Index declining after rallying for seven consecutive sessions.
On Wednesday morning, bank stocks returned to lift the market up.
Asia Commercial Bank (ACB), MBBank (MBB), Bank for Investment and Development of Viet Nam (BID) and Vietinbank (CTG) advanced between 0.4 and 3 per cent. BID was also the most active stock in the market with 5.84 million of its shares being traded.
Nguyen Ngoc Lan, Agribank Securities Company’s head of brokerage division, said bank stocks may continue to rise in the short term as investors expect banks to release positive earnings reports for 2016.
Other large-cap stocks also performed well, contributing to the market’s gains. Brewer Sabeco (SAB) gained 1.2 per cent, dairy producer Vinamilk (VNM) edged up 0.6 per cent, Faros Construction Corp (ROS) increased 0.7 per cent and property developer Vingroup (VIC) went up 1 per cent.
Market trading liquidity was low with around 66.3 million shares worth VND1.55 trillion (US$69 million) being traded.
