Shares advance on vaccine trial success

Wednesday, May 20, 2020 07:02

A customer performs a transaction at a Vietinbank branch in Ha Noi. Shares of Vietinbank (CTG) rose 4.4 per cent on Wednesday. — Photo

Vietnamese shares advanced on Tuesday in line with world stocks thanks to optimism for a global economic recovery after a successful experiment for a coronavirus vaccine.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange gained 1.06 per cent to close Tuesday at 845.92 points.

The benchmark VN-Index had risen 1.21 per cent to end Monday at 837.01 points.

Nearly 385.3 million shares were traded on the southern exchange, worth VND8 trillion (US$347.5 million).

The large-cap tracker VN30-Index climbed 1.53 per cent to close Tuesday at 799.31 points.

In the VN30 basket, 24 of the 30 largest stocks by market capitalisation and trading liquidity increased.

Notable gainers were Vietinbank (CTG), Techcombank (TCB), Vietcombank (VCB) and Vietjet (VJC).

Shares of steelmaker Hoa Phat Group (HPG) even surpassed prices recorded before the COVID-19 pandemic, gaining 4.2 per cent to close at VND26,150 per share.

The gains followed a rally on Wall Street overnight after Moderna Inc announced its COVID-19 vaccine, tested in the US for the first time, had produced protective antibodies when being trialled in eight healthy volunteers.

The positive early test results boosted sentiment as investors bet on an economic recovery.

On Wall Street overnight, the benchmark S&P 500 posted its largest one-day percentage gain in the last six weeks, gaining 3.15 per cent. The Dow Jones Industrial Average gained 3.85 per cent and the Nasdaq Composite rose 2.44 per cent.

Oil prices jumped to a two-month high, as the easing of global lockdowns allowed economic activity to restart.

Brent crude was up 1.24 per cent to end at $35.21, while US crude jumped 2.7 per cent to $32.69.

Viet Nam’s energy and mining sector index also gained nearly 0.9 per cent, according to

Notable gainers included PetroVietnam Gas JSC (GAS), Viet Nam National Petroleum Group (PLX), PetroVietnam Drilling & Well Services Corporation (PVD), and PetroVietnam Power Corporation (POW).

According to Sai Gon-Ha Noi Securities Co (SHS), in the next session on Wednesday, the VN-Index will probably continue to rise with the nearest resistance and support zone around the 880-point and 840-point marks.

“Investors holding stocks should continue to monitor the market and may seek profits when the VN-Index approaches the resistance zone of around 880 points,” SHS said.

“Those holding cash can buy in if the market faces a correction in the nearest support area of around 840 points,” SHS said in its daily report.

The HNX-Index on the Ha Noi Stock Exchange moved up 0.26 per cent to close Tuesday at 108.83 points.

The northern market index had dropped 0.45 per cent to close Monday at 108.54 points.

More than 61.8 million shares were traded on the northern bourse, worth nearly VND622.8 billion. — VNS

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