Investors' optimism boosts local stocks

Friday, May 08, 2020 08:42

Brokers work at a BIDV Securities office. Local shares advanced yesterday as market sentiment improved on hopes the virus breakout will be controlled soon. VNS Photo Truong Vi

Shares performed well yesterday, fuelled by upbeat market sentiment as anti-coronavirus measures taken by Viet Nam had proven effective, emboldening investors.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange climbed 1.78 per cent to close the session at 796.54 points.

The index had gained 2.41 per cent to end Wednesday at 782.59 points, the best daily increase since March 25. It has enjoyed an increase of 4.46 per cent in the last three days.

More than 240.8 million shares were traded on the southern exchange for VND4.4 trillion (US$187.6 million).

Market breadth was positive as gainers outnumbered decliners by 215 to 130.

As of yesterday afternoon, Viet Nam had reported no new COVID-19 cases via community transmission over the past 21 days, though 17 new imported cases were reported leaving the total at 288 with no fatalities.

The market nudged higher thanks to a boost from the banking group, with Vietcombank (VCB) increasing by 3.1 per cent to VND69,700 per share and Bank for Investment and Development of Vietnam (BID) rising by 4.3 per cent to VND37,550 per share. Other codes in the industry such as Military Bank (MBB), Vietinbank (CTG) and VPBank (VPB) also gained.

Other blue-chips also attracted cash flow and increased, such as brewery Sabeco (SAB), steelmaker Hoa Phat Group (HPG), Vingroup (VIC) and Masan Group (MSN).

On a sector basis, retail, health care, insurance, real estate, securities, seafood processing, banking, food and beverage and construction materials were among gainers. The sector indices gained between 0.92 per cent and 2.1 per cent, according to

Wholesale, oil and gas, agriculture, logistics and rubber production lost ground.

The VN30-Index, which tracks the performance of the 30 largest stocks by market capitalisation and liquidity on HoSE, increased 1.93 per cent to close at 739.98 points.

According to Bao Viet Securities Co, the VN-Index is forecast to face volatility and correction pressure at the strong resistance zone of 800-820 points during the last trading session of the week.

“If penetrating through this resistance, the index will possibly enter an uptrend toward 860-880 points in the near future,” the company said.

“Foreign investors longlasting net selling moves may influence investors sentiment with potential profit-taking pressure at strong resistances, especially when supporting information is not widely available.”

“Besides, businesses potential adjustments in 2020 business plan amidst the COVID-19 pandemic may negatively influence the index movement,” it added.

On the Ha Noi Stock Exchange, the HNX-Index rose 1.55 per cent to end yesterday at 108.31 points.

Nearly 46.8 million shares were traded on the northern bourse for VND475.3 billion.

The northern market index had gained 1.18 per cent to close Wednesday at 106.66 points. — VNS

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