Vietnamese shares rose for four straight days on Thursday, bolstered by a significant injection of cash flow into banking and steel stocks, pushing up indices.
The VN-Index on the Ho Chi Minh Stock Exchange (HoSE) rose 1.29 per cent to close the afternoon trade at 1,293.60 points.
The southern market index has risen a total of two per cent in the last four days.
The market's breadth was positive with 251 stocks increasing while 134 declined.
Nearly VND16.3 trillion (US$713 million) was poured into the southern market, equivalent to a trading volume of more than 491 million shares.
“After a boom in the first half of 2021, market liquidity has been falling sharply since the beginning of July, even as HoSE solved the problem of system overloading,” said news site cafef.vn.
“The recent sharp decline in market liquidity may come from the fear about the complexity of the COVID-19 pandemic. Investors tend to wait for more positive signs before they return to the market,” it said.
“Market liquidity reached VND25-30 trillion in previous months but this level of liquidity is difficult to maintain for a long time,” Le Anh Tuan, Deputy Investment Director of Dragon Capital, said.
“The current trading value of VND15 trillion to VND17 trillion is more reasonable,” he said.
The VN30-Index, which tracks 30 biggest stocks on the southern bourse, witnessed an increase of 1.42 per cent to close Thursday at 1,427.55 points. Of the VN30 basket, 23 stocks climbed while four slid.
Banking and steel stocks attracted cash flow with many gainers such as steel giant Hoa Phat Group (HPG), Pomina Steel (POM), Hoa Sen Group (HSG), Nam Kim Group (NKG), Asia Commercial Bank (ACB), Bank for Investment and Development of Vietnam (BID), Vietinbank (CTG), Military Bank (MBB), Sacombank (STB), VPBank (VPB) and Techcombank (TCB).
The residential real estate group also slightly rebounded from the end of the morning session. Among the gainers were Ha Do Group JSC (HDG), Khang Dien House (KDH), Dat Xanh Group (DXG) and Century Land JSC (CRE).
On the Ha Noi Stock Exchange (HNX), the HNX-Index also rose 1.54 per cent to 310.97 points.
It had also risen 0.08 per cent to close Wednesday at 306.25 points.
More than 87.6 million shares were traded on the northern exchange, worth VND2.2 trillion. — VNS