Bank shares lift VN-Index over 750

Wednesday, Jun 07, 2017 08:41

An investor tracks share prices on a smartphone. — VNS Photo Thai Ha

The benchmark VN-Index overcame the threshold of 750 points on Tuesday, boosted by strong growth of the banking sector. Recently announced Government support policies have led to positive predictions for the sector this year.

On the HCM Stock Exchange, the VN-Index increased 1.05 per cent to close at 751.31 points, marking a new nine-year peak for the third time in the past month.

On the Ha Noi Stock Exchange, the HNX-Index edged up 0.86 per cent to end at 95.74 points. The northern market index rose 2.7 per cent in the last five sessions.

The banking sector remained the major support for the market as eight of nine listed lenders advanced, of which Sacombank (STB) and Nam Viet Bank (NVB) hit the ceiling prices.

FTSE ETF late last week added shares of Sacombank into its portfolio in the next quarter together with real estate company Novaland Investment Group (NVL).

Four of the biggest valued banks including Vietcombank (VCB), BIDV (BID), Vietinbank (CTG) and Military Bank (MBB) leapt 1.6-3.9 per cent each.

Bank shares recorded an average growth of 3.26 per cent, according to data on on Tuesday.

The Government’s recent resolution on bad debt settlement and the central bank’s allowance for State-owned commercial joint stock banks to keep dividends which are supposed to be paid to the State budget to hike their charter capital are expected to boost business results of banks this year.

Growth of other large-cap stocks like Vinamilk (VNM), brewery Sabeco (SAB), Petrolimex (PXL) and PV Gas (GAS) also contributed to the market rise.

Steel shares were on the uptrend given strong buys from foreign traders. Hoa Phat Group (HPG) and Hoa Sen Group (HSG), the two biggest listed steelmakers, were the two most purchased by the foreign sector on Tuesday.

Net buy values on these two shares were VND61 billion (US$2.7 million) for HPG shares and roughly VND23 billion on HSG shares.

According to analysts at Bao Viet Securities Co, profit-taking pressure is likely to dramatically increase in coming sessions. With declining liquidity, investors should avoid new disbursement and wait for more signals from the market, they said.

Liquidity decreased on Tuesday with a total of over 261 million shares worth VND4.8 trillion ($211.5 million) traded in the two markets, down 8.6 per cent in volume and 17.2 per cent in value compared to Monday’s figures. – VNS

Comments (0)