Markets soar as bargain hunters snap up bank stocks
Vietnamese market surged on Monday as investors sought bargains in beaten down banking stocks.
The VN-Index at the Ho Chi Minh Stock Exchange rose 1.64 per cent to close at 878.67 points.
More than 476.5 million shares were traded on the southern exchange for VND7.4 trillion (US$318 million).
Market breadth was positive with gainers outnumbering losers by 286 to 99.
The benchmark index has gained nearly 31 per cent in the two months since March 24 to May 21, making the Vietnamese stock market one of the best performers globally in April and May.
Large caps performed well on Monday, with the VN30-Index rising 1.89 per cent to close at 821.47 points, as 29 of the 30 largest stocks by market value and liquidity closed in the green.
Twenty three out of 25 sectors posted gains, including retail, insurance, securities, information and technology, food and beverage, rubber, seafood, banking, real estate, agriculture, logistics, construction, and construction materials.
The banking index, which fell last week, gained 2.87 per cent as bank stocks attracted strong interest from investors.
Notable gainers were BIDV (3.4 per cent), Vietinbank (4.4 per cent), Military Bank (3.8 per cent), VPBank (5.1 per cent), Techcombank (2 per cent) and Tien Phong Bank (3.1 per cent).
Last week, most of them had been down with losses of 1.7-3.3 per cent.
Some of the biggest winners among large caps were Vinhomes (3.3 per cent), Vinamilk (1 per cent), Mobile World Group (1.65 per cent), and PetroVietnam Gas JSC (1.2 per cent).
“The VN-Index is expected to run into resistance at 880-888 points in the next few sessions,” Bao Viet Securities Company said.
There would be both corrections and sharp gains as the upward trend continues, it said.
“The market will see wild divergence among sectors in early June. Small- and medium-cap stocks might probably attract cash flows in this context.
“Large-cap stocks are not expected to fluctuate much amid an ETF review session in the first half of June. However, bank stocks may see positive movements and support the market.”
The HNX-Index on the Ha Noi Stock Exchange closed 3.94 per cent up at 114.14 points.
Nearly 86.5 million shares were traded on the northern exchange for VND937.6 billion.
Asia Commercial Bank hit the 10 per cent ceiling amid news of its imminent shift to HOSE.