Banks support the VN-Index, caution remains
Shares extended rallies on the two markets on Wednesday morning, propped up by bank stocks.
On the Ho Chi Minh Stock Exchange, the VN-Index edged up 0.3 per cent at 990.89 points.
On the Ha Noi Stock Exchange, the HNX-Index increased 0.6 per cent to 104.54 points.
A total of 101.5 million shares worth VND2.5 trillion (US$107 million) were traded in the two markets.
Banks, with strong earnings prospects, were supported the market.
Among the top 30 largest shares by market value and liquidity on the HCM City’s bourse, Vietinbank was the biggest gainer, up 2.7 per cent. The bank is planning to issue VNĐ1 trillion ($43 million) bonds by the end of this month.
Other banks including Vietcombank, BIDV, VPBank and Military Bank increased less than 1 per cent.
The market uptrend was restrained by declines of some major blue chips such as Vinamilk (down 0.9 per cent), FLC Faros Construction (down 1.9 per cent) and Bao Viet Holdings (down 0.8 per cent).
Securities companies have a prudent view on the market outlook.
According to BIDV Securities (BSC), although the index increased but low liquidity shows that investors are still cautious in the current volatile market and divergent earnings prospect of companies.