VN-Index recovers towards 1,000 points
VN-Index recovers towards 1,000 points
The VN-Index rebounded on Tuesday after four consecutive falling sessions, led by banking, insurance and steel stocks.
On the Ho Chi Minh Stock Exchange, the VN-Index increased 1.17 per cent to close at 997.70 points. It lost 3.3 per cent on Monday and a cumulative 7.4 per cent in the four previous sessions. Thus, the recovery was a positive sign after a steep fall.
Liquidity also improved with 751 million shares worth VND12.6 trillion (US$514.3 million) traded, up 15 per cent in volume and 4 per cent in value compared to Monday’s levels.
The banking industry was the market’s main driving force in the latter half of the session with an average growth of nearly 3 per cent, according to data on vietstock.vn. The biggest contributors to the VN-Index included Vietcombank (VCB), up 2.8 per cent; Vietinbank (CTG), up 6.9 per cent; BIDV (BID), up 3.1 per cent; Military Bank (MBB), up 5.1 per cent; and Asia Commercial Bank (ACB), up 4.6 per cent.
Growth of insurance stocks also supported the market with big names such as Bao Viet Holdings (BVH), Bao Minh Insurance (BMI), PVI Holdings (PVI) and Vietnam National Reinsurance (VNR) each rose by more than 4 per cent. Small companies such as Military Insurance Co (MIG) and PVI Reinsurance Corp (PRE) also added more than 3 per cent.
The recovery of steel stocks was also a bright spot in the market on Tuesday. The largest steel manufacturer Hoa Phat Group (HPG) climbed 4.3 per cent, Hoa Sen Group (HSG) hit the ceiling price of 7 per cent growth and Nam Kim Steel (NKG) increased 3.1 per cent.
According to an analyst at Viet Dragon Securities Co, improving liquidity showed an effort to contain the market's decline. With this slight movement, it’s possible that the market will recover slightly to re-test the supply at 1,000 points.
“However, it’s worth noting that the overall trend of the market is still negative and this 1,000-point area is becoming a resistance zone of the market. Therefore, investors still need to be cautious and observe supply and demand movements to assess the state of the market,” market analyst Phuong Nguyen said in a note.
Meanwhile, on the Ha Noi Stock Exchange, the HNX-Index declined for a fifth straight session, losing 0.71 per cent to end the trade at 208.02 points. The northern market’s index has lost nearly 10 per cent since October 18.
Liquidity was almost unchanged with 78 million shares worth more than VND1 trillion being traded.
Foreign traders were mixed. They continued to be net sellers in HCM City’s market with a net sell value of VND85 billion but were net buyers in Ha Noi market with a net value of nearly VND11 billion.
