VN Index ends positive on bank stocks

Wednesday, Oct 18, 2017 09:56

An investor monitors her stock portfolio at MB Securities Company. — VNS Photo Truong Vi

Shares rose strongly on the HCM Stock Exchange on Tuesday as investor confidence rose for companies that were expected to release good quarterly earnings reports.

The benchmark VN Index increased by 1.08 per cent to close at 828.29 points. It was down 0.19 per cent on Monday.

More than 177.2 million shares were traded on the southern bourse, worth VND3.91 trillion (roughly US$174 million).

The figures were up 4.8 per cent in trading volume but down 3.6 per cent in trading value compared to the previous session.

Foreign investors returned as net sellers, posting a net sell value of VND24.8 billion in comparison to their net buy value of VND221 billion made on Monday.

The market breadth was positive with 146 gaining stocks against 128 declining ones and 49 stocks ending flat.

Large-cap stocks performed well with 19 of the 30 top listed companies by market capitalisation and trading liquidity in the VN30 Index advancing.

Among the 20 sectors, shares of banks, brokerage firms, property developers and steel producers rose on high investor expectations that those firms would release good earnings reports for the third quarter.

Six of the seven listed banks on the HCM Stock Exchange saw their share prices up with Bank for Investment and Development of Viet Nam (BID), Vietcombank (VCB) and MBBank (MBB) some of the strongest gainers.

Among rising brokerage stocks were VNDirect Securities Co (VND), Saigon Securities Inc (SSI) and HCM City Securities Co (HCM).

Nguyen Van Hanh and Nguyen Duy Dinh, analysts at Sai Gon-Ha Noi Securities and MB Securities companies, had forecast financial-banking and real estate stocks would rise in the near-term period as investors would expect those companies to report higher earnings for the past quarter.

According to BIDV Securities Co (BSC), investors started to look for opportunities in shares of financial service companies, banks and steel companies, and their investment spread out among other large-cap stocks.

Strong investor confidence boosted bank stocks with VCB and BID respectively adding 2.7 and 1.5 points to the growth of the VN Index, BSC said in its daily report.

The VN Index could hit a new 10-year high level of 830 points in the coming sessions after those large-cap firms announce their third-quarter earnings, the northern brokerage company said.

On the Ha Noi Stock Exchange, the HNX Index grew 0.50 per cent to end at 109.84 points, extending its gains for a third session and posting total growth of 1.3 per cent.

More than 127.6 million shares were traded on the northern bourse, worth VND3 trillion. The figures soared nearly 173 per cent in volume and 465 per cent in value, compared to Monday.

The sharp increase in the northern market’s liquidity was attributed to foreign trading for shares of Asia Commercial Bank (ACB). More than 74.6 million shares of the bank were traded by foreign investors, worth VND2.44 trillion. — VNS

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