Energy and bank stocks lift the market
Energy and bank stocks lift the market
Shares rebounded on Wednesday after a brief fall on Tuesday, boosted by energy and bank stocks on investors’ expectation of positive Q4 earnings from these companies.
The VN-Index on the HCM Stock Exchange edged up 0.22 per cent to close the session at 953.51 points. The southern market index decreased 0.7 per cent on Tuesday.
On the Ha Noi Stock Exchange, the HNX-Index rallied 0.52 per cent to end at 113.95 points after a 0.3-per-cent drop on Tuesday.
Overall market condition was neutral with 231 stocks declining, 238 rising and 255 closing flat on the two exchanges.
Energy and bank stocks were the major supporter of the market’s rally on Wednesday.
The three biggest listed energy companies – PV Gas (GAS), Petrolimex (PLX) PetroVietnam Drilling and Well Serivces (PVD) – climbed 1.9 per cent; 4.5 per cent and 2.6 per cent, respectively. Other smaller companies such as PetroVietnam Technical Services (PVS), PetroVietnam Drilling Mud (PVC) and PetroVietnam Coating (PVB) gained values of 3-8 per cent.
Seven of 10 lenders on the two exchanges rallied with the Big Four (four biggest banks by market value and assets) – Vietcombank (VCB), Vietinbank (CTG), BIDV (BID) and VPBank (VPB) – increased between 1.7-2.9 per cent each.
According to BIDV Securities Co (BSC), stocks with good fundamentals and high expectations on the last-quarter earning results continued to draw investments.
“We believe that the market is gradually overcoming the strong correction and ready to conquer the new peak when the Q4 results will attract large amounts of cash flow,” analysts at BSC wrote in a yesterday report.
On the defensive side, brewer Sabeco (SAB) dropped by the maximum limit of 7 per cent on HCM City’s bourse for a second day under heavy profit-taking pressure after the successful divestment auction.
Other substantial losers included Vinamilk (VNM), down 1 per cent; DHG Pharmaceutical (DHG), down 2.1 per cent; Mobile World Group (MWG), down 0.7 per cent; Coteccons Construction (CTD) and Binh Minh Plastics (BMP) down 2.6 per cent.
Liquidity improved slightly with a total of 292.2 million shares worth a combined VND6.5 trillion (US$285 million) being traded on the two markets, up 3.3 per cent in trading volume and 1.6 per cent in trading value compared to the previous session.
Foreign investors concluded as net buyers for a third straight day on HCM City’s exchanges, picking up 5.5 million shares worth a net value of VND143 billion. They were also net buyers in Ha Noi for a modest net value of VND18.4 billion.
