Market reverses course, VN-Index rebounds

Thursday, Mar 18, 2021 06:56

Customers at a Vietinbank transaction office. — Photo

Viet Nam's stock market finished higher on Wednesday as a recovery of bank stocks supported the market.

On the Ho Chi Minh Stock Exchange (HoSE), the benchmark VN-Index rose 6.19 points, equivalent to 0.52 per cent, to 1,186.09 points. The index completely recovered from the losses sustained on Tuesday.

The market's breadth turned positive as 257 stocks climbed while 190 stocks fell and 68 stocks ended flat. More than 701.09 million shares were traded on the market, worth over VND5.8 trillion.

Tran Xuan Bach, an analyst from Bao Viet Securities, said the VN-Index is expected to continue to fluctuate around the territory limited by the upper bound of 1,185 - 1,200 points, which is also a resistance level, and lower bound of 1,150 - 1,155 points.

"The market might stay in this sideways territory for a while. Blue-chip stocks are unlikely to have any unexpected moves during this week as any relevant events, which might affect these stocks like future contracts expiring, will occur in later sessions," Bach added.

The gain of the market was due to the bank sector as many large-cap stocks surged. The VN30-Index posted an increase of 5.61 points, equivalent to 0,47 per cent, to 1,193.45 points.

Sixteen of 30 biggest stocks in market value rose, while 10 declined. In the morning session, 13 stocks of the VN30 basket rose.

Many big bank stocks contributed to the market's rally, including Vietinbank (CTG), up 4.91 per cent, JSC Bank For Investment And Development of Viet Nam (BID) up 2.12 per cent, Vietnam International Commercial Joint Stock Bank (VIB), up 5.75 per cent and Techcombank (TCB), up 1.13 per cent.

Other stocks from utilities and materials sectors also influenced the market's trend. There stocks were PetroVietnam Gas Joint Stock Corporation (GAS), up 2,77 per cent, Vietnam Rubber Group - JSC (GVR), up 0.85 per cent, and PetroVietnam Power Corporation (POW), up 2.57 per cent.

Meanwhile, stocks that capped the market's gain were mostly in real estate and construction sectors like Vingroup JSC (VIC), Vinhomes JSC (VHM), No Va Land Investment Group Corporation (NVL) and FLC Group JSC (FLC).

On the Ha Noi Stock Exchange (HNX), the HNX-Index climbed 0.24 per cent, equivalent to 0.67 points, to 276.55 points. The HNX30-Index also rose 1.8 per cent to 399.71 points.

On the northern bourse, more than 149.5 million shares were traded, worth over VND1.46 trillion.

In contrast, foreign investors were still net sellers on both exchanges as they net sold a value of more than VND1.01 trillion on HoSE and a net value of VND19.68 billion on HNX. — VNS

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