VN-Index hits new 10-year high on investor optimism
VN-Index hits new 10-year high on investor optimism
Shares soared on both local markets on Thursday with the VN Index hitting a fresh 10-year high as investor confidence improved, pouring strong investment into all sectors and stocks.
The benchmark VN-Index on the HCM Stock Exchange (HOSE) rose 1.16 per cent to close at 892.80 points, extending its rally for a tenth session with total growth of more than 7.1 per cent and touching a fresh 10-year high.
The HNX Index on the Ha Noi Stock Exchange (HNX) increased by 0.75 per cent to end at 108.29 points. The northern market index has advanced total 3.3 per cent after the last seven sessions.
More than 263.3 million shares were traded on both local bourses, worth VND8.17 trillion (US$363.4 million).
Trading figures posted an increase of 11 per cent in volume and 14 per cent in value compared to Wednesday.
The market was dominated by gaining stocks, which outnumbered losers by 275 to 186 on both local bourses.
Investment continued to focus on large-cap stocks on both local exchanges with large-cap trading volume and value equal to 45 per cent and nearly 70 per cent of the market’s total figures, respectively.
The VN30 Index and the HNX30 Index, which track the performance of the 30 largest companies by market capitalisation on each bourse, added 1.42 per cent and 0.62 per cent to 890.01 points and 203.23 points, respectively.
Gainers among those stocks were Sacombank (HOSE: STB), consumer goods producer Masan (HOSE: MSN), brewer Sabeco (HOSE: SAB), Vietnam Construction and Import-Export Corp (Vinaconex, HNX: VCG) and PetroVietnam Technical Services (HNX: PVS).
Masan shares jumped 4.4 per cent on Thursday. The company has bought back more than 100.6 million shares to raise the amount of treasury shares to nearly 109.9 million shares.
The transactions were carried out between October 16 and November 14, costing the largest consumer goods producer around VND5.87 trillion or an average of VND58,352 per share.
The share buyback plan also reduced the number of outstanding shares to more than 1.04 billion shares from more than 1.15 billion shares.
Vinaconex shares gained 3.2 per cent after the State Capital Investment Corporation (SCIC) on Thursday announced it will sell 96.25 million shares or 21.8 per cent of the company capital in December to cut its stake in the company to 36 per cent.
According to Bao Viet Securities Company (BVSC) analyst Tran Duc Anh, Thursday’s growth signals the stock market will likely extend its gains in coming sessions as the money spread out well on the market, proving investors were increasing demand for all stocks, even the mid- and small-cap ones.
Tran Xuan Bach, another analyst at BVSC, said investors are becoming more optimistic about the uptrend of the stock market, resulting in the rise of trading liquidity and higher number of gaining stocks.
However, Bach warned the stock market will soon face challenges from investors’ profit-taking, especially after the VN Index has made a 10-day rally and reached its new 10-year high.
