Stock markets recover and hold gains
Stock markets recover and hold gains
Shares managed to recover during Tuesday afternoon trading after sliding in the morning due to global tension and drops on world markets.
The benchmark VN-Index on the Ho Chi Minh Stock Exchange was up 0.32 per cent to 919.02 points. The index grew nearly two per cent on Monday to close at 916.06 points.
On the Ha Noi Stock Exchange, the HNX-Index slipped 0.04 per cent to end at 103.91 points. It increased 0.91 per cent to end at 103.95 points on Monday.
Over 190 million shares worth a combined VND4.5 trillion (US$194 million) were traded on the two bourses.
During the morning session, Vietnamese shares retreated due to the bearish performance of the US market in Monday’s session.
US stocks came under heavy selling pressure on Monday, with the Nasdaq tumbling three per cent as investors dumped shares in Apple and other internet and technology firms. Conflicting signals between the United States and China on their trade dispute added to the caution.
The Dow Jones Industrial Average fell 395.78 points, or 1.56 per cent, to 25,017.44. The S&P 500 lost 45.54 points, or 1.66 per cent, to 2,690.73. The Nasdaq Composite dropped 219.40 points, or 3.03 per cent, to 7,028.48.
But in the afternoon, cash flow pouring into some large-cap stocks helped the VN-Index recover.
After hitting the ceiling price on Monday, real estate developer Vingroup (VIC) moved up 0.83 per cent on Tuesday, closing the session at VND97,200 per share, strongly supporting the indices.
At this price, VIC’s market capitalisation reached more than VND310 trillion, making it the largest market capitalisation company in Viet Nam. The capitalisation of Vingroup is equal to the combination of the capitalisation of the two blue-chips dairy firm Vinamilk and Bank for Investment and Development (BIDV).
According to the recently released earnings report, in the first nine months of this year, VIC’s total consolidated revenue was up 47.2 per cent year-on-year. Profit before tax and after tax climbed by 72.1 per cent and 11.2 per cent, respectively, over the same period last year. The business the group has expanded in many areas, recently launching the 420-hectare VinCity Ocean Park project in Ha Noi, applying modern civilisation models from Singapore. Vincom Retail has opened nine more commercial centers, bringing the total number of shopping centers to 60 in 34 provinces in the country. Vincom also bought the Fivimart supermarket system with 25 supermarkets, bringing its total number of supermarkets across Viet Nam to more than 100.
In early October, VinFast made an impressive debut with an SUV and a Sedan at the Paris Motor Show 2018. Vingroup has also set up the Viet Nam Grand Prix company with a capital of VND1 trillion to host the Formula One Grand Prix for the first time in April 2020.
Shares of the Viet Nam Construction and Import-Export JSC (VCG) rose by 1.1 per cent on the news that Telecom giant Viettel and the State Capital Investment Corporation (SCIC) will auction off their stakes in VCG on Thursday.
Notably, An Phat Plastic & Green Environment JSC (AAA) was also the market’s darling when it reached the ceiling price of VND14,800 per share on Tuesday. Recently, An Phat Holdings, a stakeholder of AAA, registered to buy seven million additional AAA shares. If the transaction is successful, An Phat Holdings will hold 82.31 million shares of AAA, equivalent to 48.08 per cent.
According to BIDV Securities Company (BSC), Tuesday was the third consecutive session in which the VN-Index went in the opposite direction. The company expects the market will fluctuate in the mid-week sessions.
