Shares bounce back on bargain hunting

Wednesday, Jul 29, 2020 06:57

An SSI logo in the company headquarters in Ha Noi. Shares of SSI Securities Corporation (SSI) hit the daily limit rise of 7 per cent on Tuesday. — VNS Photo Nguyen Manh Ha

Vietnamese shares rebounded sharply on Tuesday to end in positive territory as investors went bargain hunting for stocks that fell in previous trading sessions.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange (HOSE) gained 3.59 per cent to end trading at 813.36 points.

Nearly 328.5 million shares were traded on the southern bourse, worth VND5 trillion (US$215.9 million).

Market breadth was positive with 360 shares gaining and 49 declining.

The southern market index suffered its biggest daily percentage drop in four months on Monday, losing 5.31 per cent to end the day's trading session at 785.17 points.

The move came after new cases of COVID-19 community transmission were confirmed in Da Nang and nearby Quang Ngai Province on Sunday evening.

The new cases intensified fears of another round of Government restrictions and worsening economic damage.

“The next development of the COVID-19 pandemic will determine the VN-Index trend. If there is no new case, the market can return to 830-840 points. If there are more new cases, the market will likely to correct to 780 points,” said BIDV Securities Co.

The large-cap VN30-Index, tracking the performance of the 30 largest stocks by market capitalisation and liquidity on HoSE, soared 3.59 per cent to close Tuesday at 756.17 points.

Buying demand increased towards the last trading minutes on Tuesday session and helped most stock groups increase sharply.

In the VN30 basket, SSI Securities Corporation (SSI) and Vinhomes (VHM) hit the ceiling price, Bank for Investment and Development (BID) soared 6.5 per cent, Vinamilk (VNM) rose by 6.3 per cent, Petro Vietnam Gas JSC (GAS), Hoa Phat Group (HPG), brewery firm Sabeco (SAB), Vietinbank (CTG) and VPBank (VPB) all rose more than 4 per cent.

Small- and mid-cap stocks also recorded strong gains.

On a sector basis, all 25 sectors on the stock market increased, including insurance, securities, banking, real estate, retail, agriculture, information and technology, food and beverage, healthcare, mining, rubber production, seafood processing, logistics, construction and construction materials.

On the Ha Noi Stock Exchange, the HNX-Index also surged 4.99 per cent to end at 107.98 points.

More than 53 million shares were traded on the northern exchange, worth VND439.6 billion. — VNS

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