VN shares advance on hopes for virus block
VN shares advance on hopes for virus block
Vietnamese shares posted the second biggest gain in the last month following the Government’s intention to block the spread of coronavirus across the country.
The benchmark VN-Index on the Ho Chi Minh Stock Exchange rose 2.04 per cent to end Monday on 814.65 points.
This was the index’s second biggest increase in the last month. On July 28, the VN-Index jumped 3.59 per cent.
The benchmark lost a total of 3.71 per cent last week.
The market sentiment eased off from worries about the second coronavirus wave in the country after Prime Minister Nguyen Xuan Phuc during a Monday meeting urged ministries, Government agencies and local authorities to stop the second wave of coronavirus in Viet Nam.
On Sunday, the Prime Minister also asked the banking-financial sector to give more support to the business community so they could recover from the pandemic.
On Monday, large-cap stocks were the driving force of the market, pulling both mid-cap and small-cap groups.
Better market confidence lifted the blue-chip tracker VN30-Index up 2.31 per cent to 757.86 points and the mid-cap and small-cap indices up 2.48 per cent and 2.72 per cent, respectively.
The VN30 futures maturing on August 20 gained 2.34 per cent to 742.00 points.
In the VN30 basket, 29 of the 30 largest stocks by market capitalisation and trading liquidity advanced while only one declined.
Sugar producer Thanh Thanh Cong-Bien Hoa (SBT) led the group’s upturn, followed by steelmaker Hoa Phat (HPG), consumer staples firm Masan (MSN), SSI Securities (SSI), dairy firm Vinamilk (VNM), and petrol company Petrolimex (PLX).
The Vietnamese stock market had returned to its balance in recent days despite the surge of infection cases and deaths in Viet Nam, Le Anh Tung, market strategy director at KB Securities Vietnam Co, said.
“Worries about a nationwide breakout had been priced in,” he said, adding the market sentiment may improve as the authorities strengthen their control over infected areas.
“The strong gain today with improved trading liquidity indicated investors’ confidence was better and cash seemed to return to the market,” Sai Gon-Ha Noi Securities Co (SHS) said in its daily report.
“But in the short run, the market would still decline,” the company said. “The gap of 16.86 points between the VN30-Index and its August futures proves investors remain pessimistic.”
On the Ha Noi Stock Exchange, the HNX-Index advanced 2.72 per cent to close Monday at 110.43 points.
The northern market index lost a total of 1.7 per cent last week.
More than 347 million shares were traded on the two exchanges, worth VND5.23 trillion (US$223.3 million).
