Shares rise on investor optimism

Friday, Apr 28, 2017 08:00

Investors watch stock moves at Vietcombank Securities Company. — VNA/VNS Photo Tuan Anh

Shares rose for a second day in the two local markets on Thursday on investor optimism that the market will return to a positive trend soon.

The benchmark VN Index on the HCM Stock Exchange advanced 0.91 per cent to end at 716.53 points. Viet Nam’s key index has gained 1.3 per cent in the last two days.

The smaller HNX Index on the Ha Noi Stock Exchange added 0.86 per cent to finish at 89.32 points, a two-day increase of 1.7 per cent.

More than 274 million shares were traded on both local bourses, worth nearly VND4.68 trillion (US$207.8 million).

Market trading liquidity increased from Wednesday on both local bourses with an increase of 41 per cent in volume and 16.3 per cent in value.

Gains were seen in 17 of the 20 industries in the stock market with shares of energy producers, property developers, food and beverage companies, and construction firms leading the way.

Foreign investors remained net buyers with a total net buy value of VND124.8 billion, focusing on PetroVietnam Technical Services (PVS), information technology group FPT Corp (FPT), PetroVietnam Gas (GAS) and dairy producer Vinamilk (VNM).

PVS surged 5.4 per cent, FPT gained 1.1 per cent, GAS added 2.4 per cent and VNM rose 1.8 per cent.

Gains by PVS and GAS were the major factors that pushed the energy industry forwards, followed by PetroVietnam Coating (PVB), which jumped 4 per cent.

Other stocks that had strong gains included sugar producers Thanh Thanh Cong Tay Ninh (SBT) and Bien Hoa Sugar (BHS), which soared 5.6 per cent and 3.3 per cent.

The two largest sugar producers in the country have announced they will discuss a merger between the two firms at their coming annual shareholder meetings. If the deal is sealed, it will create a sugar company with total chartered capital of VND5 trillion.

Higher market trading liquidity in the last two sessions proved investors were optimistic that the stock market would continue to grow in the short term, Bao Viet Securities (BVSC) said in its report.

The next test for the VN Index would be the level of 720 points, BVSC said, adding that the benchmark index would face a big challenge to surpass this level. — VNS

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