Shares rebound as bargains sought
Shares rebound as bargains sought
Shares rebounded yesterday on the two stock exchanges as investors poured money into insurance and food and beverage stocks on positive earnings prospects.
On the HCM Stock Exchange, the VN-Index inched up 0.2 per cent to close at 720.5 points after a 0.6 per cent decrease on Tuesday.
On the Ha Noi Stock Exchange, the HNX-Index went up 0.1 per cent to end at 90.7 points. The northern market index had fallen 0.9 per cent a day earlier.
Liquidity remained high with a total of 236 million shares worth VND4.4 trillion (US$193 million) traded in the two markets.
Insurance stocks continued to lead the market rebound yesterday with an average growth of 1.94 per cent, followed by the food and beverage group, rising 0.9 per cent on average.
PVI Holdings was the biggest gainer with the daily maximum rise of 10 per cent, extending its rally to four consecutive sessions. Investors speculated on information that the insurer would pay a 20-per-cent dividend and on plans to increase foreign ownership limit to 100 per cent.
In a positive spillover effect, other insurers like Bao Minh Insurance (BMI), Petrolimex Insurance (PGI) and BIDV Insurance (BIC) climbed strongly by between 2.3 per cent and 6.8 per cent. The biggest listed insurance company, Bao Viet Holdings (BVH), gained a modest 0.5 per cent.
Food and beverage shares remained positive with major firms including Vinamilk (VNM), Masan Group (MSN), Kido Group (KDC) and brewery Sabeco (SAB) all posting increased share values.
“After a loss in the previous session, the rebound today was a positive sign showing a high buying demand in low price ranges,” Tran Duc Anh, a stock analyst at Bao Viet Securities Co wrote in a market report yesterday.
He reckoned the market would extend its rally in the next sessions within a narrow range as the VN-Index approached its old peak.
The VN-Index reached a ten-year high of 723.52 points on Monday. The benchmark gauge has gained over 8 per cent this year.
On the other side of fence, banks and agricultural stocks continued to slide.
Hoang Anh Gia Lai Co (HAG) and its agricultural arm Hoang Anh Gia Lai Agricultural Investment JSC (HNG) slumped 5 per cent and 7 per cent, respectively.
Big banks like Vietcombank (VCB), Vietinbank (CTG), Military Bank (MBB) and Asia Commercial Bank (ACB) dropped below 1 per cent.
