Stocks rebound on better sentiment
Stocks rebound on better sentiment
Vietnamese shares bounced back from a three-day losing streak on Monday as investor confidence rebounded on banks’ six-month results and a lower chance of margin-call risk.
The benchmark VN Index on the HCM Stock Exchange rose 0.99 per cent to close at 767.27 points, reversing a three-day loss of 1.5 per cent.
The HNX Index on the Ha Noi Stock Exchange gained 0.91 per cent to end at 97.81 points. The northern market index had fallen total 1.9 per cent in the previous three sessions.
More than 234.3 million shares were traded on both local exchanges, worth VND4.8 trillion (US$213 million).
Tuesday’s trading figures were increases of 6.6 per cent in trading volume and 35.6 per cent in trading value compared to Monday.
Foreign investors remained net buyers with total net buy value of VND1.27 trillion, a seven-fold increase compared to the figure made on Monday.
Bank stocks performed the best among 20 sectors on the stock market. The banking sector index advanced 2.6 per cent, according to vietstock.vn.
Seven of the nine listed bank stocks made gains with shares of MB Bank (MBB) and Bank for Investment and Development of Viet Nam (BID) rising 6.8 per cent and 5.7 per cent, respectively.
The two banks have announced their net profits in the first half of 2017 increased by 35 per cent and 2 per cent year-on-year, respectively, to reach VND2 trillion and VND2.7 trillion.
Strong increases in the those two bank stocks also had a positive impact on others in the banking sector such as Sacombank (STB), Vietinbank (CTG) and Asia Commercial Bank (ACB).
In addition, investor sentiment improved after investors were able to clear concerns over a high chance of margin call that had forced them to offload parts of their portfolios and sent the stock market down in the previous three sessions.
According to Nguyen Huu Binh, a leading analyst at Vietnam Investment Securities Company (IVS), margin lending was always a double-edged sword for investors and it clearly had them worried.
As investor expectations in the securities market remained high, the market would soon stabilise after investors offloaded parts of the portfolios to balance their accounts, he said.
Other sectors that benefited from better investor sentiment included brokerage, agriculture, rubber and plastic production, and real estate.
