Shares bounce back thanks to Vingroup
Viet Nam’s benchmark VN-Index bounced back on Friday after a three-day decline, driven by solid performance of Vingroup and its subsidiaries.
On the Ho Chi Minh Stock Exchange (HOSE), the VN-Index recouped 0.71 per cent to close Friday at 988.71 points.
The southern bourse’s index lost 3 per cent in the previous three sessions.
On the Ha Noi Stock Exchange, the HNX-Index edged up 0.26 per cent to end at 108.09 points. The northern market index dropped 2.8 per cent in the last three sessions.
A total of 263.5 million shares worth a combined VND5.6 trillion (US$240 million) changed hands on the two exchanges.
Blue chips again led the market upturn with 19 of the top 30 shares by market value and liquidity on the HOSE gaining value while only six declined.
Vingroup’s companies were the biggest contributors.
Vinhomes (VHM) climbed 3.3 per cent to VND91,100 ($3.91) per share while Vingroup (VIC) and Vincom Retail (VRE) both increased by 1.4 per cent. Investors may speculate on media reports that South Korean conglomerate SK Group plans to purchase $1 billion worth of stock in Vingroup.
“The VN-Index increased slightly in the morning thanks to purchasing power focused on VHCM, VIC and VRE. Trading on these stocks continued to increase in the afternoon session,” analysts at BIDV Securities Co wrote in its report on Friday.
Besides Vingroup’s firms, oil and gas stocks also performed well and supported the market.
PV Gas (GAS), the biggest energy firm by market value, increased nearly 1 per cent. Other companies such as PetroVietnam Drilling and Wells Service (PVD), PetroVietnam Technical Service (PVS), PetroVietnam Coating (PVB) and PetroVietnam Drilling Mud (PVC) grew between 1 per cent and 3 per cent.
Foreign investors made four consecutive net buying sessions on Friday, picking up shares worth a net value of VND700 billion ($30 million).
According to BIDV Securities Co, the Vietnamese market will likely maintain its recovery trend after investors focus on buying good fundamental companies which were sold off strongly in the previous sessions. Besides, the information that the US Federal Reserve will not raise interest rates is also a supporting factor.
“Investors should monitor world and regional economic developments, especially the meeting of high-ranking US-China officials on March 28 and 29,” it said.