Shares rise on investor confidence

Thursday, May 18, 2017 08:29

An investor watches stocks move on her laptop. Local shares advanced on Wednesday as investor confidence was bolstered by a meeting between the Prime Minister and local businesses. — Photo vietstock.vn

Shares picked up in both local markets yesterday as investor confidence turned positive after a meeting between the Prime Minister and local businesses.

The benchmark VN Index gained 0.30 per cent to close at 727.20 points, rebounding from a two-day loss of 0.04 per cent.

The HNX Index on the Ha Noi Stock Exchange closed up 0.69 per cent at 91.91 points, extending its gain for a fourth day with a total growth of 2.2 per cent.

Market trading liquidity reduced from Tuesday. More than 269.2 million shares were exchanged on both local bourses, worth VND5.37 trillion (US$238.7 million).

Large-cap stocks performed well, with nearly two-thirds of the 30 largest companies by market capitalisation advancing.

Among gainers, dairy producer Vinamilk (VNM) rose 2.4 per cent, HCM City Infrastructure Investment (CII) and DHG Pharmaceutical (DHG) jumped 3.3 per cent and 3.8 per cent, respectively.

Other gaining stocks among the 30 largest listed firms gained between 0.2 per cent and 1.7 per cent.

Insurance-finance and banking industries performance lifted the stock market, driven by the growth of Sai Gon-Ha Noi Bank (SHB), Asia Commercial Bank (ACB), Sacombank (STB), Sai Gon Securities (SSI) and Bao Viet Holdings (BVH).

BVH edged up 0.7 per cent, Sai Gon Securities (SSI) increased by 1.7 per cent, Sacombank (STB) was 1.2 per cent and ACB added 2.1 per cent.

However, property stocks suffered from profit-taking, while energy shares were pulled down by lower oil prices during the Asia trading day.

Recent strong gains in property stocks put them in the position that triggered profit-taking among investors.

Real estate firms that fell on profit-taking included Hoang Quan Consulting-Trading-Service Real Estate (HQC), Tan Tao Investment and Industry (ITA), FLC Group (FLC) and Vingroup (VIC).

Sai Gon-Ha Noi Securities (SHS) said in its report that the market was boosted by positive investor confidence after the Prime Minister had a meeting with local businesses, which brought positive news for Viet Nam’s business community.

Good market sentiment drove the VN Index, when it fell to the support range of 723-725 points yesterday morning, proving that demand of investors for low-priced stocks remained positive, the brokerage said, adding that the VN Index is expected to rise further today and target the old peak of 732 points. — VNS

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