VN Index surges after Tet

Tuesday, Feb 12, 2019 06:51

A trading session takes place at Bao Viet Securities Company in Ha Noi. — VNA/VNS Photo Tran Viet

Vietnamese shares soared in the first trading session after returning from the one-week Tet (Lunar New Year) holiday, driven by positive investor sentiment.

The benchmark VN Index on the Ho Chi Minh Stock Exchange rose by 1.92 per cent to close at 926.10 points. The southern market index had gained a total 1.80 per cent between the beginning of the year and the pre-Tet trading week.

More than 124.6 million shares were traded on the main bourse, worth VND2.92 trillion (US$125.5 million), down from last Friday’s figure of 140.8 million shares worth VND3.89 trillion.

The large-cap VN30 Index performed well, rising 2.19 per cent to end at 878.67 points, with 25 of the 30 largest stocks by market capitalisation advancing.

Meanwhile, only three of the 30 largest stocks in the VN30 basket declined and two stayed firm.

Among 20 sectors on the stock market, banks, property firms, brokerages and petroleum companies were the best performers.

Those four industries are also expected to lead the stock market up this year thanks to positive growth projections.

According to VNDirect Securities Corporation (VNDS), banks and property developers are likely to take the flag this year as they show “good structural growth stories” and “solid project pipelines, big pre-sales backlog and focus on real end-user demand.”

In addition, the oil and gas sector “could see a sentiment makeover from a possible recovery in oil prices,” VNDS said in its 2019 market projection.

“Oil prices have likely bottomed as OPEC supply cuts offset concerns of future demand weakness and given that China looks to be capitalising on low prices to build up its strategic reserves,” the company said. “Energy security vulnerabilities could lead to an acceleration in exploration activity but territorial disputes cast a long shadow.”

In the banking sector, VPBank (VPB) jumped 5.7 per cent, followed by Sacombank (STB), Vietinbank (CTG) and Vietcombank (VCB).

Other big gainers in the energy, brokerage and property industries included PetroVietnam Gas (GAS), PetroVietnam Power (POW), HCM City Securities (HCM), VNDirect Securities (VND), Vingroup (VIC) and Dat Xanh Group JSC (DXG).

According to Sai Gon-Ha Noi Securities JSC (SHS), improved sentiment in the first trading day of the new lunar year helped lift the benchmark VN Index over the resistance level of 920 points with better trading liquidity.

“The market momentum may be preserved in the next one or two trading days before encountering profit-taking pressure,” SHS said in its daily report. “Trading liquidity would be a must-watch factor and if it is kept above the 20-day average, the VN Index could grow further to 955 points.”

On the Ha Noi Stock Exchange, the HNX Index was up 1.85 per cent to close at 105.25 points. It had posted a 0.85 per cent fall since the beginning of the year.

More than 32 million shares were traded on the northern market, worth VND364.4 billion. — VNS

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