Shares up on positive market outlook

Wednesday, Feb 08, 2017 08:30

Investors trace market movements. Vietnamese shares rose yesterday on positive market outlook. - Photo
Shares edged up slightly on the two stock exchanges on Tuesday, along with a sharp increase in liquidity, driven by positive market outlook.

The VN-Index on the HCM Stock Exchange rose 0.3 per cent to close at 701.9 points. On the Ha Noi Stock Exchange, the HNX-Index also added 0.85 per cent to end at 85.7 points.

Blue chips had mixed impact.

Some heavyweight stocks on the main bourse in HCM City such as dairy firm Vinamilk (VNM), real estate giant VinGroup (VIC), FPT Corp (FPT), Vietcombank (VCB) and Saigon Securities Inc (SSI) maintained upward trends.

“The money is rotating around big stocks and shifting to stocks of small and medium capitalisation, as well as moving from the banking sector to the oil and gas group, construction and agriculture,” analysts at BIDV Securities Co (BSC) wrote in a market report.

Among gainers, steelmaker Hoa Phat Group (HPG), Kinh Bac City Development (KBC), Hoang Anh Gia Lai Co (HAG) and its agriculture arm Hoang Anh Gia Lai Agricultural (HNG) advanced by between 1.1 and 2.4 per cent each.

HPG rose 1.5 per cent to VND44,600 (US$1.97) per share after the Dung Quat Economic Zone Authority and Quang Ngai Industrial Park Management Board on Monday granted it an investment certificate to build a $2.65 billion iron and steel production complex.

Overall market condition was negative, however, with 231 stocks declining, 204 rising and 269 closing unchanged.

Liquidity climbed with a total of 198.4 million shares worth a combined VND3.76 trillion ($166.4 million) being traded in the two markets, up 25 per cent in volume and 30 per cent in value compared to Monday’s levels.

According to BSC analysts, if high liquidity is maintained, the market index has a chance to rise to around 700 points, as well as creating momentum to conquer resistance at 710 in the next sessions.

Foreign investors remained net buyers in HCM City’s market but their net buy value decreased 68 per cent from the previous session to just VND670 million. Their purchases focused on blue chips such as Vinamilk, Saigon Securities Inc, Novaland Investment Group and Hoa Phat Group.

They turned to be net sellers on the Ha Noi bourse for a value of VND1.3 billion. – VNS


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