Strong cash flow poured into the market on Wednesday helping the indices reverse from the morning session and climb in the afternoon.
The market received strong support from foreign investors’ net buying. The significant movement of the Chinese market also positively impacted domestic investor sentiment.
Viet Nam’s benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) increased by 0.21 per cent to end Wednesday at 994.49 points.
The southern market index fell 0.15 per cent to close at 992.45 on Tuesday.
On the Ha Noi Stock Exchange, the HNX-Index also climbed 0.21 per cent to end the session at 108.48 points.
It lost 0.26 per cent to end Tuesday at 108.24 points.
A total of 302.7 million shares worth a combined VND5.7 trillion (US$243 million) changed hands on the two bourses.
The VN30 Index, which tracks the top 30 shares by market value and liquidity on the HoSE, decreased 0.01 per cent to end at 923.58 points.
Asian stocks had a more exciting session on Wednesday thanks to the rally of the Chinese market.
The Shanghai Composite Index rose more than 1.5 per cent, hovering near a 9-month high, as Chinese state planners said the government will bolster domestic consumption this year.
Beijing announced it would cut billions of dollars in taxes and infrastructure spending on Tuesday to reduce the risk of a stronger recession.
On Wednesday, the oil and gas sector performed well, rising 3.39 per cent, driven by PetroVietnam Technical Services Corporations (PVS) (+1.4 per cent), Viet Nam National Petroleum Group (PLX) (+3.5 per cent), PetroVietnam Drilling and Wells Service (PVD) (+4.9 per cent), and PetroVietnam Coating JSC (PVB) (+9.1 per cent).
Pharmaceutical stocks gained 0.98 per cent, thanks to DHG Pharmaceutical Joint Stock Company (DHG), Binh Dinh Pharmaceutical and Medical Equipment JSC (DBD), Central Phamaceutical Joint Stock Company No3 (DP3) and Cuu Long Pharmaceutical JSC (DCL). Notably, DCL hit the daily limit rise of 7 per cent.
Adversely, media stocks lost 5.5 per cent, following Yeah1 Group Corporation (YEG)’s fall. YEG hit the daily limit decline of 7 per cent.
Foreign investors on Wednesday bought a net VND73.27 billion on the HOSE, focusing on Viet Nam National Petroleum Group (PLX) (VND27.1 billion), Hoa Phat Group (HPG) (VND18.28 billion) and Vinhomes (VHM) (VND12.86 billion). In addition, they bought a net VND12.17 billion on the HNX.
According to Bao Viet Securities Company, in the next session, the market is forecast to continue its uptrend and soon pass the 1,000-point level.
Under this positive scenario, the VN-Index will enter the next resistance zone of 1,000-1,025 points.
The market may slowly enter this zone with a wide divergence among stock groups.
Bank stocks are predicted to gain and possibly drive the market’s uptrend. Meanwhile, capital flows will maintain movement towards mid-cap, penny, and low-price stocks, especially those that have yet to rally or are adjusting. — VNS