Shares recover after summit failure

Tuesday, Mar 05, 2019 08:19

An investor at Vietcombank Securities Co’s trading floor. — VNA/VNS Photo Tuan Anh

Shares advanced on Monday on the two national stock exchanges after a drop from the disappointing conclusion of the DPRK-US summit last week as investors poured money into heavyweight stocks.

Viet Nam’s benchmark VN-Index increased 1.47 per cent to close Monday at 993.99 points on the Ho Chi Minh Stock Exchange.

The southern market index fell a total 9.4 per cent last week with most of the losses caused by the negative effects of the no-deal summit.

On the Ha Noi Stock Exchange, the HNX-Index gained 1.18 per cent to end the session at 108.53 points. The northern market index was close to flat last week.

A total of 290 million shares worth a combined VND5.73 trillion (US$246 million) changed hands on the two bourses.

“The market recovered after the shock from the DPRK-US summit. Cash flow continued to pour strongly from blue chips to small- and mid-cap stocks,” said Khai Tran, a stock analyst at Viet Dragon Securities Co, in a daily report.

The VN30, which tracks the top 30 shares by market value and liquidity on the Ho Chi Minh Stock Exchange, gained 1.43 per cent, while VNMID-Index and VNSML-Index both increased by more than 1 per cent.

Almost all sectors gained on Monday. Oil and gas shares were top gainers, up by 3.06 per cent, driven by PV Gas (GAS), Petrolimex (PLX), PetroVietnam Drilling and Wells Service (PVD) and PetroVietnam Technical Services (PVS) with growth of between 3 per cent and 5 per cent.

Oil prices climbed yesterday in global markets following supply cuts by OPEC and as the US and China were reported to be close to signing a trade deal.

International Brent futures were up 0.5 per cent to trade at about $65.39 a barrel, while the US West Texas Intermediate (WTI) crude also increased 0.5 per cent to $56.08 per barrel.

Other substantial gainers included banks, securities companies and real estate firms with average growth of between 1.5 per cent and 2.5 per cent.

Vietcombank (VCB), Vietinbank (CTG) and BIDV (BID) increased 1 per cent, 1.9 per cent and 2.3 per cent, respectively. Vinhomes (VHM) and Vingroup (VIC) each grew by more than 2 per cent.

The market remains in a short-term uptrend. However, it may experience volatility and correction pressure in the resistance zone of 1,000-1,008 points, according to Bao Viet Securities Company.

“After two rebounding sessions, the market may grow at a lower pace with a wide divergence among stock groups. Foreign investors had a third consecutive session of net selling. If this string of net selling continues, it will have such a negative impact on blue chips, and indirectly hurt the short-term uptrend of the market,” it said in a daily report. – VNS

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