Shares advance on business news
Shares advance on business news
Shares advanced on both local markets on Monday as investor confidence was bolstered by positive business news from listed companies.
The benchmark VN Index on the HCM Stock Exchange and the HNX Index on the Ha Noi Stock Exchange gained 0.46 per cent each to close at 772.52 points and 98.73 points, respectively.
The VN Index extended gains for a second session with total growth of 0.8 per cent while the HNX Index reversed a three-session decline of 1.5 per cent.
Trading liquidity was modest compared to the previous sessions, with more than 294.8 million shares traded on both local exchanges, worth VND4.85 trillion (US$215.5 million).
Sharp rises in some particular shares, such as Japan-Viet Nam Medical Instrument JSC (JVC) and PetroVietnam Drilling and Well Services (PVD), following news on their businesses were a major reason behind the rise.
Shares of JVC and PVD both hit their daily trading limit of 7 per cent allowed on the HCM Stock Exchange.
On Monday, JVC reported a four-fold increase in its net profit to over VND16 billion for the fourth quarter of fiscal year 2016-17, which lasted from April 1, 2016 to March 31, 2017, admitting that there were some mistakes with the firm’s accounting action.
PVD late Friday announced it had signed six drilling contracts with the Russian oil group Rosneft, worth $42 million, to provide drilling services and rigs for the Russian firm’s operations in the near future.
Increasing oil prices also made a positive impact on local energy stocks such as PetroVietnam Gas (GAS) and PetroVietnam Mud Drilling (PVC). Brent crude rose 0.1 per cent to trade at $45.57 a barrel.
Market analysts also attributed the market gains to the recovery of bank stocks after they suffered from profit-taking last week on expectations that the latest bad debt settlement resolution, passed by the National Assembly on Wednesday, would help local lenders improve their financial strength and raise profits in 2017.
Five of the nine listed banks increased, including large-cap stocks such as Vietcombank (VCB), BIDV (BID) and Vietinbank (CTG). The five bank stocks advanced between 0.9 per cent and 1.6 per cent.
According to Sai Gon-Ha Noi Securities (SHS), the stock market would remain positive in coming sessions and forecast that the VN Index would head to the level of 775 points on Tuesday and the support range for the benchmark would be 765-769 points.
