Bank stocks lift the market back up
Bank stocks lift the market back up
Shares rebounded on the two stock exchanges on Tuesday after many heavyweight stocks recovered following experts’ predictions of a positive market outlook.
On the HCM Stock Exchange, the VN-Index was up 0.31 per cent to close at 799.94 points. The benchmark index dropped 0.47 per cent on Monday after hitting a 10-year peak of over 801 points last Friday.
The overall market condition was optimistic, with 158 stocks rising, 98 falling and 87 ending flat.
Large-cap stocks led the market upturn as 18 of the top 30 largest shares by market value and liquidity on the southern exchange (VN30) advanced, while only nine slumped.
Banks were the main support on Tuesday. The Big Four (including four largest banks by market value and assets) all gained value. Military Bank (MBB) was the biggest gainer with a 2.45 per cent growth. The bank’s shares also came second in terms of market volume, with 6.4 million shares changed hands.
Vietcombank (VCB), Vietinbank (CTG) and BIDV (BID) also rose 0.93 per cent, 0.54 per cent and 1.49 per cent, respectively. Smaller banks, such as Vietnam Prosperity Bank (VPB) and Eximbank (EIB), rose 0.95 per cent and 1.24 per cent, respectively.
Blue chips in other sectors, such as steel, retail, insurance and finance also supported the market, among them Hoa Phat Group (HPG), Hoa Sen Group (HSG), Bao Viet Holdings (BVH), FPT Corp (FPT), Mobile World Group (MWG) and Masan Group (MSN).
However, some big firms still sank into the red, such as Vinamilk (VNM), FLC Faros Construction (ROS), DHG Pharmaceutical (DHG) and brewer Sabeco (SAB).
Though saying the market rally was mainly driven by a small number of large-cap stocks, BIDV Securities Co maintained its view that any correction would be short term and the money in the market would partly return to fundamental stocks supported by positive news from the business outlook and in the attractive discounted price range.
Also according to Nguyen The Minh, head of analysis and consultancy for individual investor at Saigon Securities Co, major stocks which have propped up the market in the previous rallies, such as Vinamilk, VinGroup, Masan Group, as well as many real estate stocks, still have optimistic business outlooks and this will continue supporting the market in the future.
On the Ha Noi Stock Exchange, the HNX-Index also increased 0.81 per cent to end at 103.72 points.
Liquidity improved slightly compared to Monday, with a total of 195.4 million shares worth a combined VND4.45 trillion (US$196 million) being traded in the two markets.
