Shares rebounded on Tuesday on the two national stock exchanges after a flop on Monday, propped up by the strong growth of several major large caps.

The benchmark VN-Index on the HCM Stock Exchange rallied 0.63 per cent to close Tuesday at 825.24 points, off-setting Monday’s loss of 0.25 per cent.

Large-cap stocks recovered and led the upturn as over half of the top 30 largest shares by market value and liquidity gained value and 10 declined.

FLC Faros Construction’s stock (ROS) was the biggest gainer, rising by the daily maximum limit of 7 per cent at VND161,300 (US$7.11) per share. This is the 19th consecutive session of gains for the stock, with cumulative growth of 52.6 per cent since the rally began.

Meanwhile, the biggest listed energy company PV Gas (GAS) picked up 2.4 per cent to settle at VND69,700 a share. PV Gas reported nearly VND15.1 trillion ($665.2 million) in net revenue in the third quarter, up 9.4 per cent year-on-year. Its strong Q3 number came from higher oil price and the elimination of turnaround from Nam Con Son Pipeline in 2017, which helped double its net profit to VND1.9 trillion.

Besides ROS and GAS, many heavyweight blue chips such as Vinamilk (VNM), Mobile World Group (MWG), Binh Minh Plastic (BMP), Vietcombank (VCB), Military Bank (MBB) and brewer Sabeco (SAB) also rose.

According to Viet Dragon Securities Company (VDS), the market trend is still mainly dependent on large-cap movements, as investors have become more cautious and conservative with speculative stocks.

Investors may buy on rumors of earnings results of listed companies. However, the picture of profit is not clear enough to encourage accumulation of stocks at this time and there is a high probability that the VN-Index will decline in November, VDS analysts wrote in the October strategy report.

On the Ha Noi Stock Exchange, the HNX-Index recovered part of its Monday losses, closing up 0.42 per cent at 106.69 points.

Negotiated trade

A total of over 223 million shares worth a combined VND6.7 trillion ($296 million) were traded in the two markets on Tuesday. These figures represented a decrease of 15.5 per cent in volume but an increase of 28.8 per cent in value compared to Monday’s levels.

Strong growth in trading value came from put-through (negotiated) transactions worth a total of VND3.5 trillion. Transactions on shares of dairy giant Vinamilk accounted for 80 per cent of the total.

Over 18.1 million Vinamilk shares worth nearly VND2.8 trillion changed hands by foreign traders yesterday.

Earlier, F&N Dairy Investment registered to buy nearly 21.77 million shares of Vinamilk from October 2 to 31 through order matching or put-through trade on the stock exchange. F&N Dairy Investment currently holds 16.04 per cent of Vinamilk’s charter capital. If the transaction is carried out successfully, its ownership in the Vietnamese dairy firm will increase to 17.54 per cent.

Vinamilk’s shares have expanded 18.6 per cent this year and are currently traded at around VND149,000 a share. – VNS