Vietnamese stocks rebounded on Tuesday on the back of large-cap stocks, spurred by bottom-fishing demand.
The VN-Index on the Ho Chi Minh Stock Exchange (HoSE) closed the day at 1,063.66 points, an increase of 1.15 per cent.
The market's sentiment was positive with more stocks increasing, of which 306 stocks inched higher and 144 reduced. Liquidity increased compared to the previous session, with more than 514.8 million shares traded, equivalent to a value of VND10.2 trillion (US$417.4 million).
“The market dropped from the opening of the morning session. VN-Index dropped to 1,035 points before bottom-fishing appeared and pushed the index up, helping the index narrow its drop and ended at 1,051.58,” said BIDV Securities Co.
“Currently, the VN-Index has successfully closed above 1,050. In short term, the index might struggle in the 1,050-1,060 zone,” it said.
The 30 biggest stocks tracker VN30-Index posted a gain of 1.13 per cent, to finish Tuesday at 1,059.06 points. Of the VN30 basket, 23 stocks climbed, while five declined and two ended flat.
Banking stocks rebounded strongly and bolstered the market, with gainers including Sai Gon Thuong Tin Commercial Joint Stock Bank (STB), Sai Gon-Ha Noi Bank (SHB), Asia Commercial Bank (ACB), Military Bank (MBB) and Vietinbank (CTG), VPBank (VPB), Techcombank (TCB), Tien Phong Bank (TPB) and Lien Viet Post Bank (LPB).
There were many quality businesses that have great growth potential but their current valuations were lower than the average for many years. This was the golden time to buy in, James Bannan, director of investment fund Coeli Asset told financial news site ndh.vn.
"Vietnamese stocks may recover in the short term after a strong sell-off since the end of August. Investors should continue to closely monitor market movements to assess stock prices, determining signals that the market is creating a bottom,” said Cao Thi Ngoc Quynh, Corporate Customer Development Director of SSI Securities JSC.
On a sector basis, 18 out of 25 sector indices on the stock market gained ground, including insurance, banking, wholesale, construction, IT and logistics, agriculture, real estate, food and beverage, retail, healthcare, seafood production, and plastic and chemical production.
Decliners, meanwhile, included construction materials, securities, oil and gas and rubber production.
The HNX-Index on the Ha Noi Stock Exchange (HNX) also ended higher. The northern market index gained 1.17 per cent, to close Tuesday at 229.12 points.
More than 54.9 million shares were traded on the HNX, worth VND975.3 billion. — VNS