Bank stocks sustain market growth
Bank stocks sustain market growth
Both stock indices rebounded on Monday, driven by a recovery among bank stocks, as traders sought bargains after a short decline last week.
On the HCM Stock Exchange, the VN-Index edged up 0.63 per cent to close at 743.49 points. The southern market index decreased 0.6 per cent last week following a five-week rally.
On the Ha Noi Stock Exchange, the HNX-Index inched up 0.60 per cent to end at 94.93 points. The northern market index rose 0.73 per cent last week.
Overall market condition was positive with 246 stocks rising, 208 declining and 250 remaining unchanged on the two exchanges.
However, while shares in the banking, mining, fertiliser and rubber sectors recorded growth, shares in construction, real estate and plastic manufacturing industries continued to decline.
For banks, eight out of nine listed lenders advanced and only Eximbank (EIB) closed flat. BIDV (BID), Vietcombank (VCB) and Sacombank (STB) were the biggest gainers with each seeing rises of around 2.4 per cent.
Major large-cap stocks contributing to the market rise also included dairy giant Vinamilk (VNM), petrol retailer Petrolimex (PXL) and PV Gas (GAS).
On the negative side, both Hoang Anh Gia Lai Co (HAG) and its agribusiness arm Hoang Anh Gia Lai Agriculture Investment Co (HNG) dropped by the maximum rate of 7 per cent allowed on the HCM Stock Exchange, following news that London-based FTSE exchange-traded fund removed HAG shares from its portfolio in the second-quarter review.
HAG and HNG are two of the top 30 largest shares by market value and liquidity on the HCM Stock Exchange.
Foreign traders sold net two million HAG shares yesterday, putting heavy pressure on the share price. Saigon Securities Inc has estimated FTSE ETF may sell over 10.2 million HAG shares in the future.
Late last week, FTSE EFT reported it would remove HAG, insurer Bao Viet Holdings (BVH) and PetroVietnam Power Nhon Trach 2 Co (NT2) from its portfolio in the next quarter while adding shares of real estate Novaland Investment Group (NVL) and Sacombank (STB).
BVH closed unchanged while NT2 increased by over 1 per cent.
According to analysts at BIDV Securities Co, the VN-Index may overcome the short-term resistance level of 750 points if liquidity continues to be steady and large-cap stocks sustain growth.
A total of 285.6 million shares worth over VND5.8 trillion (US$255.6 million) were traded in the two markets.
