VN Index reaches eight-year high

Wednesday, Jul 06, 2016 09:25

Traders at BIDV Securities Corp. Financial stocks advanced on expectations of positive second quarter performance reports. — VNS Photo Truong Vi
HA NOI (Biz Hub) — Vietnamese shares extended gains yesterday as financial firms advanced on expectations of positive second-quarter performance.

The benchmark VN Index on the HCM Stock Exchange (HoSE) edged up 0.5 per cent to finish at 650.88 points, reaching a fresh eight-year high. The southern market index has rallied a total 4.9 per cent in seven sessions.

The HNX Index on the Ha Noi Stock Exchange inched up 0.1 per cent to close at 85.91 points, climbing a total 2.8 per cent in the last six trading days.

Financial firms, including banks, brokerage companies and insurers, led the markets up on expectations that these companies have performed better in the past three months.

In the insurance sector, Bao Viet Holdings (BVH) jumped 3.3 per cent and PVI Holdings (PVI) was up 0.4 per cent.

In the banking sector, the three largest banks, Vietcombank (VCB), Vietinbank (CTG) and the Bank for Investment and Development of Viet Nam (BID), gained between 1.8 per cent and 2.9 per cent.

Other banks such as Sacombank (STB), Military Bank (STB) and Sai Gon-Ha Noi Bank (SHB) also advanced.

Securities firms maintained their good forms. Sai Gon Securities Inc (SSI), HCM City Securities Corp (HCM), VNDirect Securities Corp (VND) and BIDV Securities Inc (BSI) remained the factors that lifted the sector up.

SSI added 1.8 per cent, HCM jumped 4 per cent, VND advanced 3.1 per cent and BSI went up 3.3 per cent. SSI, HCM and VND were also the four largest securities companies in Viet Nam, according to HoSE.

Other large-cap stocks on the two local exchanges, such as consumer goods producer Masan Group (MSN) and Tien Phong Plastic JSC (NTP), also helped markets gain. MSN and NTP were up 0.7 per cent and 3.8 per cent, respectively.

On the opposite side, energy firms declined as oil prices extended their decline. London-traded Brent crude lost 2.4 per cent to trade at US$48.89 a barrel, totaling a two-day fall of 2.9 per cent.

US crude West Texas Intermediate (WTI) slid 2.8 per cent to trade at $47.64 a barrel after the July 4th US Independence Day break.

Among local energy stocks, PetroVietnam Gas Corp (GAS) was down 1.5 per cent, and PetroVietnam Drilling and Well Service Corp (PVD) and PetroVietnam Technical Service Corp (PVS) fell 1.6 per cent each.

Two other blue chips, the dairy firm Vinamilk (VNM) and technology retailer FPT Corp (FPT), ran into profit-taking after recent gains. VNM and FPT closed down 0.7 per cent each. — VNS

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