Bank stocks back market rally
Bank stocks back market rally
The market ended higher on Tuesday, but lost momentum from foreign capital flows as foreign investors net sold on the key southern bourse.
The VN-Index on the Ho Chi Minh Stock Exchange (HoSE) increased by 8.61 points, or 0.78 per cent to 1,111.18 points, recouping some of the previous session's losses. It had declined by 14.53 points on Monday.
Analysts from Saigon - Hanoi Securities SJC (SHS) said that the market kicked off the Year of the Cat with a rally session and a strong correction.
"However, according to our analysis, 2023 will probably be a positive year for the stock market. The market has escaped the downtrend and entered the recovery and accumulation zone before creating enough foundation to form a real uptrend," said SHS.
"The opportunities are available for all types of investors. The market correction period will create good disbursement chances."
The market's breadth on Tuesday remained positive with 209 stocks on HoSE edging up, while 122 stocks moved lower. Liquidity was stable, of which more than 748.4 million shares were traded on the southern market, worth VND13.6 trillion (US$580 million).
The VN30-Index, which tracks 30 biggest stocks on HoSE, also rebounded. It finished Tuesday at 1,125.07 points, a rise of 11.12 points, or 1 per cent. Twenty stocks in the VN30 basket advanced, while ten slid.
The index's reversal was mainly driven by gains of bank stocks and some manufacturing stocks. Accordingly, Vietcombank (VCB) was the biggest gainer, leading the market's rally. It was up 2.22 per cent in market capitalisation.
Other big bank stocks lifting the sentiment were Vietinbank (CTG), BIDV (BID), Sacombank (STB), and Asia Commercial Joint Stock Bank (ACB) with gains of at least 2.5 per cent.
Hoa Phat Group (HPG) and Vietnam Rubber Group (GVR) also contributed to the bullish trend.
However, gains were capped by losses of some large-cap stocks, led by Vinamilk (VNM) with a fall of 2.9 per cent. It was followed by Vinhomes (VHM) and Vingroup (VIC), down 1.17 and 1.04 per cent, respectively.
On the Ha Noi Stock Exchange (HNX), the HNX-Index continued its positive movements. It closed the trading day at 222.43 points, up 1.65 points, or 0.75 per cent.
During the day, more than VND1.3 trillion worth of shares, equivalent to a trading volume of 88.24 million shares, was traded on HNX.
Foreign investors put on the brakes and net sold nearly VND119 billion on the southern exchange. However, they still net bought a value of VND5.7 billion on HNX.
