Shares advanced on both local exchanges yesterday, driven by bank and energy stocks as investor confidence was positive for companies releasing good earnings reports.
The benchmark VN Index on the HCM Stock Exchange added 0.6 per cent to close at 691.36 points. The southern market index has increased by total 1.3 per cent in the last three sessions.
The HNX Index on the Ha Noi Stock Exchange gained 0.9 per cent to end at 83.74 per cent. The northern market index bounced back from a fall of 0.3 per cent on Monday.
Banks and energy firms had the strongest impact on the market yesterday.
Bank stocks continued to improve on expectations that more local banks will be traded on the stock market, the restructuring of the banking system will help the sector meet international standards and the Government will soon reduce its ownership in local banks, cafef.vn reported.
Seven of the nine listed banks advanced yesterday. Sacombank (STB) jumped 3.1 per cent and Asia Commercial Bank (ACB) rose 2.6 per cent, the best growth rates among bank stocks, while others such as Vietcombank (VCB) and Military Bank (MBB) were up between 0.9 per cent and 2.2 per cent.
Energy stocks also performed well as oil prices remained positive during the Asia trading session. US crude was being traded at US$52.96 a barrel, up 0.4 per cent from Monday and 3.7 per cent from January 18.
Oil prices are expected to increase this year to over US$60 a barrel and that could help boost the performance of energy firms in Viet Nam.
In the energy sector, PetroVietnam Gas Corp (GAS) rose 2.6 per cent, PetroVietnam Drilling and Well Services Corp (PVD) jumped 3.5 per cent and PetroVietnam Mud Drilling Corp (PVC) was up 1.2 per cent.
In addition, investor confidence was also bolstered by positive earnings reports released by some of the listed firms such as Coteccons Construction JSC (CTD) and Digiworld Corporation (DGW).
Coteccons in 2016 recorded a post-tax profit of VND1.42 trillion, nearly double 2015’s number. Digiworld Corp saw a post-tax profit of VND65 billion, a yearly increase of 7 per cent.
Market trading liquidity remained modest from the previous sessions ahead of Tet (Lunar New Year) holiday as investors held on to their cash and were unwilling to make further investments to avoid risks. Nearly 114.6 million shares were traded worth nearly VND2.1 trillion. — VNS