Vietnamese shares posted a strong comeback on Wednesday as investors were calmed by market regulators and bottom-fishing was triggered for worst-hit companies during the previous two-day collapse.
The benchmark VN Index on the HCM Stock Exchange gained 2.86 per cent to close at 1,040.55 per cent. It had plunged 8.4 per cent in total in the previous two sessions.
The HNX Index rose 3.45 per cent to end at 119.62 points, ending a two-session decline of 6.7 per cent.
The UPCOM Index on the Unlisted Public Company Market (UPCoM) jumped 3.30 per cent to finish at 56.76 points after having dropped a total of 7.6 per cent in the previous two days.
More than 313.2 million shares were traded on the three local exchanges, worth VND7.82 trillion (US$347.5 million).
Financial-banking and pharmaceutical stocks were the best-performing among the 20 sectors on the stockmarket with the banking, brokerage and pharmacy industry indices jumping 4.3 per cent, 5.5 per cent and 5.3 per cent, respectively, data on vietstock.vn showed.
Market trading conditions turned well on Wednesday, with 534 gaining stocks against 146 decliners, while 110 other stocks remained unchanged.
Large-cap stocks also had a good trading day as 24 of the 30 largest shares by market capitalisation advanced in the VN30 Index.
The VN30 Index was up 2.30 per cent to 1,030.91 points with more than 74.6 million shares being exchanged, worth VND3.64 trillion.
The large-cap index was lifted by strong growth of DHG Pharmaceutical JSC (DHG), Bank for Investment and Development of Viet Nam (BID), Saigon Securities Inc (SSI), Vietinbank (CTG), MBBank (MBB) and Vietcombank (VCB).
Apart from VCB rising 4 per cent, the five other stocks soared at least 5.6 per cent. Of those five stocks, DHG and BID hit their daily increasing limit of 6.8 per cent and 6.9 per cent.
The strong rebound of the stockmarket came after State Securities Commission chairman Tran Van Dung told national television VTV on Monday that investors should remain calm despite the market tumbling in the first two sessions of the week.
Dung attributed the collapse of the Vietnamese market to volatile trading around the world and a strong sell-off in stocks following the indices’ recent rally.
He also urged investors to remain confident about the prospects of the domestic stock market as Viet Nam’s economy is forecast to perform better in 2018, thus making good impacts on the securities market.
According to Viet Dragon Securities Company (VDSC), the tumbling market in the first two trading days this week brought opportunities to investors to purchase shares at lower-than-expected prices.
“Investors who still have cash and have clear valuation on listed companies will definitely have chances to buy," VDSC said in a report.
“The divergence will be stronger as the capital inflow might not be sufficient to flow into all the shares that have gone down, but only into a few shares that have strong fundamental catalysts.”
Among the five stocks listed above, DHG had fallen total 12.5 per cent in the previous four days. SSI had dropped 11 per cent in the previous two sessions and the figures for VCB, BID and CTG were between 8 per cent and 13.3 per cent. — VNS