Shares advance on banking stocks

Wednesday, Oct 23, 2019 07:39

Bank stocks received strong cash flow and helped spur the market with gainers included Vietcombank (VCB) (+1.4 per cent), Bank for Investment and Development (BID) (+1.8 per cent), Vietinbank (CTG) (+1.6 per cent), Techcombank (TCB) (+0.4 per cent). — Photo

Domestic shares gained on Tuesday, aided by the rally of banking stocks and other individual large-caps.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange edged up 0.37 per cent to close at 987.19 points.

Nearly 231.6 million shares were traded on the southern bourse, worth VND4 trillion (US$171 million).

The VN-Index fell 0.57 per cent on Monday.

The market was lifted by banking stocks and some large-caps like PetroVietnam Gas JSC (GAS) (up 0.2 per cent), Vietjet Air (VJC) (rising 2.8 per cent) and brewery Sabeco (SAB) (increasing 2.8 per cent).

The momentum of SAB kept the VN-Index rising at the end of the session after a wobble in the afternoon. Today, SAB contributed more than 1.3 points to the VN-Index.

Bank stocks received strong cash flow and helped spur the market with gainers including Vietcombank (VCB) (up 1.4 per cent), Bank for Investment and Development (BID) (rising 1.8 per cent), Vietinbank (CTG) (increasing 1.6 per cent), Techcombank (TCB) (up 0.4 per cent).

In the opposite direction, many pillars ended down such as dairy firm Vinamilk (VNM)(down 0.8 per cent), Masan Group (MSN) (down 0.8 per cent) and Vingroup (VIC) (falling 0.1 per cent).

Real estate and construction stocks also attracted cash flow, such as Hoang Quan Real Estate Corporation (HQC) (+1.8 per cent), Kinh Bac City Development Share Holding Corporation (KBC) (+0.3 per cent), and Long Son Petroleum Industrial Zone Investment JSC (PXL) (+5.6 per cent).

According to BIDV Securities Co (BVSC), the market rebound was also aided by positive information about US-China trade negotiations.

Vice Foreign Minister Le Yucheng said on Tuesday that China and the US have achieved some progress in their trade talks and that any problem could be resolved as long as both sides respected each other.

On the Ha Noi Stock Exchange, the HNX-Index rose 0.47 per cent to end at 104.49 points.

Nearly 33.8 million shares were exchanged on the northern bourse, worth VND413 billion.

The northern market index lost 1.39 per cent on Monday.

According to Bao Viet Securities Co (BVSC), the market will fluctuate in the next session. The VN-Index will possibly approach the resistance zone of 989-992 points tomorrow.

"Overall, we maintain our opinion that shares will move sideways with alternate ups and downs around 980-1000 points in the short term," it said.

The market is expected to experience a wide divergence among stock sectors, depending on third quarter business results, it said. VNS

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