Markets rebound from Monday fall

Wednesday, Apr 27, 2016 08:16

An investor tracks stock movements online at the Bao Viet electronic stock floor. — VNS Photo Thai Ha

HA NOI (Biz Hub) — Vietnamese shares rebounded on both local markets from Monday falls as high investor confidence boosted large-cap stocks in the insurance and property sectors.

The benchmark VN Index on the HCM Stock Exchange rose 1.2 per cent to close at 598.48 points and the HNX Index on the Ha Noi Stock Exchange managed to inch up 0.1 per cent to finish at 81.01 points.

"Investor confidence in blue chips was bolstered on expectations that the US central bank will not raise its interest rates at its meeting tomorrow," Bao Viet Securities Corp (BVSC) wrote in its report.

BVSC said that such high investor confidence boosted blue chips such as insurer Bao Viet Holdings (BVH), property firm Vingroup JSC (VIC), Vietcombank (VCB) and PetroVietnam Gas Corp (GAS).

Those stocks increased as foreign purchases occupied a large amount of their total trading volumes yesterday. BVH surged 6.3 per cent, VIC added 2.9 per cent, VCB rose 2.8 per cent and GAS was up 2.5 per cent.

FLC Group (FLC) surged 6.3 per cent to lead the sector up after the company was approved to sell more than 179.6 million shares to current shareholders in order to increase its capital by nearly VND1.8 trillion (US$80 million) to more than VND7 trillion.

Two large companies in the agriculture sector, Hoang Anh Gia Lai JSC (HAG) and HAGL Agricultural JSC (HNG), jumped 6.8 per cent and 6.9 per cent to extend their gains of 18 per cent and 15 per cent for a fourth and third day, respectively.

Other smaller companies also helped lift the markets after they announced higher profits in the first quarter of 2016 compared with the same period last year, as well as positive business plans for this year.

An Phat Plastic and Green Environment JSC (AAA) increased 1.1 per cent after the company said it earned a net profit of VND25.2 billion in the first three months of 2016, a big improvement compared with a loss of VND11.2 billion in last year's first quarter.

Kim Long Securities Corp (KLS) jumped 3.2 per cent after the company announced its plans to pay each shareholder VND10,000 per share in August after the company shut down its business.

On the opposite side, Vietinbank (CTG) lost 1.2 per cent after the bank said it would not pay dividends for last year's performance, and phone retailer Digiworld Corp (DGW) dropped 1.5 per cent after it reported a first-quarter net profit of VND811 billion, down 13 per cent from last year's first quarter.

The local markets exchanged more than 226.4 million shares worth VND3.87 trillion, a slight increase from the previous day. — VNS

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