Shares move up but growth narrowed at the end of trading

Thursday, Feb 13, 2020 08:28

Engineers operate equipment at Nhon Trach 2 Power Corporation, a member unit of PetroVietnam Power Corporation (POW). POW rose 7 per cent on Wednesday. — VNA/VNS Photo Huy Hung

Shares maintained their upward trend on Wednesday but gains slowly narrowed at the end of trading as pillar stocks lost momentum.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange extended 0.32 per cent to end the session at 937.68 points.

The index rose 0.42 per cent to close Tuesday at 934.67 points.

“The VN-Index is forecast to face profit-taking pressure at a resistance zone of 940-943 points during the next session. If it breaks through the zone, the index could reach 960-965 points,” said Bao Viet Securities Co (BVSC).

“However, the novel corona virus (COVID-19) remains an issue with no signs of control, so investors would watch out for its negative impacts on the stock market. We are leaning toward the possibility of the market swinging between the support zone of 920-922 and the resistance zone of 937-943 points,” BVSC said.

More than 228 million shares were traded on the southern bourse on Wednesday, valued at VND4.2 trillion (US$94.7 million).

The market breadth was positive as gainers outnumbered decliners by 242 to 107.

Retail, wholesale, agriculture, insurance, food and beverage, logistics, construction, seafood processing, securities, information and technology, oil and gas, banking, and rubber production were the major driving forces.

The sector indices grew between 0.16 per cent and 2.13 per cent, according to vietstock.vn.

Among the top gainers were VPBank (VPB) (+1.8 per cent), Techcombank (TCB) (+2.3 per cent), Military Bank (MBB) (+2.1 per cent), Vietcombank (VCB) (+0.2 per cent), PetroVietnam Gas JSC (GAS) (+0.5 per cent), Masan Group (MSN) (+1.2 per cent), steel maker Hoa Phat Group (HPG) (+0.8 per cent), Vinhomes (VHM) (+0.3 per cent), Novaland (NVL) (+0.4 per cent) and Viet Nam National Petroleum Group (PLX) (+0.2 per cent).

In the opposite direction, some pillars lost ground and narrowed the gains of the overall market such as Vingroup (VIC) (-1.2 per cent), Vietinbank (CTG) (-2 per cent), brewer Sabeco (SAB) (-1.5 per cent), and insurer Bao Viet Holdings (BVH) (-0.5 per cent).

Large-cap stocks also lifted the VN30-Index by 0.80 per cent to 863.23 points.

Oil and gas stocks attracted cash flow, following movements of global oil prices. US crude futures rose 1.36 per cent to $50.62 a barrel, while Brent crude rose 1.74 per cent to $54.95 per barrel.

Gainers in the local market were PetroVietnam Drilling and Well Services Co (PVD) (+1.5 per cent), PetroVietnam Power Corporation (POW) (+7 per cent), PetroVietnam Technical Services Corporation (PVS) (+1.9 per cent), Binh Son Refining and Petrochemical Company (BSR) (+2.6 per cent), PetroVietnam Oil Corporation (OIL) (+4.3 per cent), Global Asset Business Joint Stock Company (GAB) (+3.2 per cent) and ThaiDuong Petrol Joint Sotck Company (TDG) (+1.1 per cent).

According to BIDV Securities Co (BSC), the European Parliament (EP) voted on two important agreements on Viet Nam's trade, the EVFTA and EVIPA on Wednesday, which will be seen as a positive signal for the market.

“Some sectors that have benefited from the two agreements include textiles, aquaponics and seaports,” BSC said.

On the Ha Noi Stock Exchange, the HNX-Index climbed 3.57 per cent to end Wednesday at 108.51 points.

More than 44.25 million shares were traded on the northern bourse for VND583 billion. — VNS

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