VN-Index inches up on capital inflow

Tuesday, Dec 05, 2017 07:52

Investors on Saigon Securities Inc’s trading floor in Ha Noi. – VNS Photo Viet Thanh

Shares started the new trading week on a positive note with the benchmark VN-Index rising 1.01 per cent to close Monday at 970.02 points.

Investors were excited with the market outlook and poured money in stocks with solid confidence that the VN-Index will soon break the 1,000-point threshold.

Over 270 million shares worth VND6.22 trillion (US$272.8 million) were traded on Monday on the HCM Stock Exchange, up 18.6 per cent in trading volume and 17.6 per cent in trading value compared to the previous session.

“The increasing cash flow of investors will be great motivation for stocks to continue increasing,” analysts at BIDV Securities Joint Stock Company (BSC) wrote in a note yesterday.

The VN-Index will likely approach the 1,000-point level shortly, they predicted.

Viet Nam’s benchmark stock index gained 13.5 per cent in the past month and has climbed 44.5 per cent since the beginning of this year.

Large-cap stocks continued to fuel market momentum, as 23 of the top 30 largest shares by market value and liquidity on the HCM Stock Exchange gained value and only five corrected down.

PetroVietnam Drilling and Well Services (PVD) and Hoa Sen Group (HSG) both hit the daily rise limit of 7 per cent. The biggest listed stocks like Vinamilk (VNM) soared 3.6 per cent; Vietcombank (VCB) and VinGroup (VIC), rose over 2 per cent each; and Saigon Securities Inc (SSIb), was up 5.6 per cent.

Brewer Sabeco (SAB) slowed down its growth to just 0.7 per cent in the afternoon under rising profit-taking pressure but remained the most expensive stock, priced at VND323,300 ($14.18) a share.

Overall market condition was positive with 171 stocks rising, 121 falling and 54 closing flat.

According to FPT Securities Joint Stock Company, given the rising divergence among large-cap stocks, investors may seize opportunities appearing in small- and mid-cap stocks which have not increased much in the past rallies to take advantage of the uptrend spillover effect and reduce correction risks with many large caps.

On the Ha Noi Stock Exchange, the HNX-Index was up 1.05 per cent to close yesterday at 116.70 points.

Liquidity was also positive with nearly 98 million shares worth VND1.3 trillion being traded.

The northern market index rose 4.2 per cent last week, expanding over 44 per cent this year. – VNS

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