Investors were preoccupied last week about whether the US central bank, known as the Federal Reserve, would raise interest rates. The Fed decided to keep its benchmark rate near zero. — Photo vneconomy

HA NOI  (Biz Hub) — Shares extended rallies on Viet Nam's two stock exchanges yesterday as investors were confident the country's growing economy will boost company earnings.

On the HCM Stock Exchange, the VN-Index rose for the second day, adding another 1 per cent to close the session at 572.12 points. It edged up 0.7 per cent on Friday.

Meanwhile on the Ha Noi Stock Exchange, the HNX-Index also increased 0.4 per cent to end at 78.07 points, extending its winning streak to four days in a row. The Index has advanced almost 2 per cent in the past four sessions.

Investors were preoccupied last week about whether the US central bank, known as the Federal Reserve, would raise interest rates. The Fed decided to keep its benchmark rate near zero.

"After the Fed story, investors have turned their attention to domestic economic information, especially the earnings results of listed companies in the third quarter," said Hoang Thanh Tung, an analyst at International Royal Securities Co.

Experts expect Viet Nam's economy to grow between 6 per cent and 6.5 per cent this year.

"These factors create quite a bright outlook for the domestic economy during the rest of the year, whether the Fed raises rates or not," Truong Van Phuoc, vice chairman of the National Financial Supervisory Commission, told reporters on Friday.

Blue chips continued to play a driving force in pushing the market forward yesterday as 20 of the top 30 shares by market value and liquidity in the HCM City's market climbed.

Banks were the biggest gainers. Six of total nine listed lenders posted gains while only one slumped.

Military Bank (MBB) rose by 2.7 per cent as investors reacted positively to the information that the bank sold all 390.6 million shares in its private placement to five domestic investors on September 18. The State Capital Investment Corporation bought 160 million shares and now owns 10 per cent of its charter capital.

The overall market condition was rather positive with 34 per cent of 675 stocks advanced, 23.5 per cent declined and other 42.5 per cent closed unchanged.

Liquidity decreased on the two exchanges, however. Only 109.4 million shares worth VND1.71 trillion (US$76 million) were changed hands in HCM City yesterday, down 29 per cent in volume and 43 per cent in value against Friday's levels. These figures were also lower than the daily trading average of 121.5 million shares and VND2.2 trillion ($97.8 million) recorded in August.

The number was much more modest in Ha Noi's market with 32.4 million shares worth VND368.4 billion ($16.4 million) traded.

Quang Nam Rubber Investment Co (VHG) continued to be the most active stock nationwide with nearly 8 million shares traded. It climbed another 2.5 per cent to close yesterday at VND8,300 a share. It rose over 9 per cent in the past four days after the company said it will buy back 5 million shares of the company after getting approval from the State Securities Commission. — VNS