Banks push VN Index to new high

An investor watches stock movements. The VN Index yesterday was lifted by bank stocks to touch a new 10-year high of 722.14 points. — Photo tinnhanhchungkhoan.vn

Vietnamese shares rose for a second day on both local exchanges on Friday, driven by banking-finance and energy stocks following speculations on a local bank’s divestment from its sub unit and slight increase in oil prices.

The benchmark VN Index on the HCM Stock Exchange edged up 0.4 per cent to close at 722.14 points, reaching a fresh ten-year high. The southern market index has gained a total of 1.3 per cent in the last two days.

The HNX Index on the Ha Noi Stock Exchange advanced 1.6 per cent, the highest daily growth since January 3, to end at 91.37 points. The northern market index has increased by a total of 1.8 per cent after two sessions.

Friday’s gains also helped the VN Index and the HNX Index finish up 1.6 per cent and 3.4 per cent, respectively, compared to the previous week’s closing levels.

Market trading liquidity remained high with more than 283.7 million shares being exchanged, worth VND5.25 trillion (US$233.5 million). The trading figures rose sharply from Thursday’s numbers.

The market yesterday was driven up by banking-financial stocks and energy shares, followed by other sectors such as food and beverage producers.

Sai Gon-Ha Noi Bank (SHB) led the banking sector’s growth, hitting the daily trading growth limit of 9.6 per cent on speculations that the bank may sell nearly half of its ownership in the joint financial arm to foreign investors.

Among other bank stocks, Asia Commercial Bank (ACB) and Bank for Investment and Development of Viet Nam (BID) were up 2.4 per cent and 2.6 per cent, respectively, and Vietinbank (CTG) and MBBank (MBB) added 1.1 per cent and 1.6 per cent.

Brokerage and insurance companies also performed well, including insurance-finance group Bao Viet Holdings (BVH), MB Securities Company (MBS), Sai Gon Securities Inc (SSI) and VNDirect Securities Corp (VND).

Energy stocks also had a good trading day on a slight increase in global oil prices. Brent crude went up 0.6 per cent to trade at $50.85 a barrel after having slid 2 per cent in the previous three sessions.

Among local energy stocks, PetroVietnam Gas Corp (GAS) added 2.4 per cent, PetroVietnam Drilling and Well Services Corp (PVD) was up 0.5 per cent and PetroVietnam Technical Services Corp (PVS) rose by 1.1 per cent. — VNS