Market bounces back, VN-Index gains more than 13 points

Thursday, May 13, 2021 07:51

Workers at Vietnam Rubber Group (GVR)'s processing plant. The company shares hit the maximum daily gain of 7 per cent yesterday. — Photo courtesy of GVR

Viet Nam’s stock market settled higher on Wednesday, reversing the morning course as many stocks recovered from earlier losses. Meanwhile, foreign investors continued to flee from the market.

On the Ho Chi Minh Stock Exchange (HoSE), the market benchmark VN-Index jumped 13.05 points, or 1.04 per cent, to close Wednesday trade at 1,269.09 points. It hit the session low of 1,249.18 points.

The market breadth was positive with 309 stocks climbing while 102 stocks declined. And 51 stocks ended flat.

The liquidity was also high as over 671.2 million shares were traded on the southern bourse, worth VND19.78 trillion.

According to Bao Viet Securities, the VN-Index is expected to continue to struggle at the resistance territory around 1,275 points in the next few sessions.

“The index is likely to face some corrections before testing this resistance zone again,” the securities firm said in a daily report to investors.

“In general, the market might continue to move sideways to create a new base above 1,200 point-level in the short-term.”

Bao Viet Securities recommended investors keep stock proportions in portfolios at 35 - 40 per cent, and give priority to holding medium-term positions.

Investors also should consider opening long position in the short-term if the market corrects to the 1,200 - 1,220 point-level or successfully breaches the resistance zone of 1,275 - 1,285 points, the firm added.

The recoveries of many large-cap stocks were the main driving forces for the market. The VN30-Index, which tracks 30 biggest stocks in market capitalisation on HoSE, rose 20.98 points, or 1.54 per cent, to 1,380.17 points.

Of the VN30 basket, 26 stocks increased while only three fell and one stock stayed unchanged.

Bank stocks led the market’s rally yesterday with Techcombank (TCB) being the biggest gainer, up 4.79 per cent.

Other bank stocks recording outstanding performance were Sacombank (STB), which hit the maximum daily gain of 7 per cent, Vietinbank (CTG) up 1.81 per cent, and VPBank (VPB) up 1.59 per cent.

Stocks from the material sector also gained big with Vietnam Rubber Group (GVR) up nearly 7 per cent, while Masan Group (MSN) and Hoa Phat Group (HPG) were up 2.46 per cent and 1.13 per cent, respectively.

Meanwhile, losses of Vingroup JSC (VIC), Viecombank (VCB) and Vinhomes JSC (VHM) capped the market’s gain.

On the Ha Noi Stock Exchange (HNX), the HNX-Index jumped 0.92 per cent to 282.33 points. During the session, over 92.3 million shares were traded on the bourse, worth nearly VND2 trillion.

On the other hand, foreign investors were still net sellers on both exchanges with a total value of VND566.7 billion. Of which, they net sold a value of VND566.13 billion on HoSE and a value of VND10.57 billion on HNX. —VNS

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