VN-Index witnesses largest one-day gain since 2012

Thursday, Mar 26, 2020 08:41

Petrovietnam Gas JSC (GAS)’s LNG gathering and distribution system from Ham Rong and Thai Binh mines into Tien Hai industrial park. GAS hit the daily limit rise of 7 per cent on Wednesday. — VNA/VNS Photo The Duyet

Vietnamese shares bounced back on Wednesday thanks to the upbeat global mood as massive stimulus efforts injected optimism amid the rapid spread of COVID-19.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange gained 4.71 per cent to close the session at 690.25 points, its largest one-day percentage gain in eight years.

The last time the VN-Index experienced a rise of more than 4 per cent was on March 5, 2012, when the index increased by 4.01 per cent.

The VN-Index fell 1.11 per cent to close at 659.21 points on Tuesday.

Nearly 270.2 million shares were traded on the southern bourse, worth VND4.9 trillion (US$206.8 million).

On the US market, investor sentiment was bolstered, with the Dow Jones Industrial Average climbing 11.37 per cent, its largest one-day percentage gain since 1933, while the S&P 500 soared 9.38 per cent to 2,447.33, its biggest one-day percentage rise since 2008.

The US Congress announced on Tuesday they passed a $2 trillion stimulus package to contain the economic damage from the COVID-19 pandemic.

Investor worries of an economic downturn were soothed somewhat after the US Congress announcement.

On the Vietnamese market, 26 of the 30 largest stocks by market capitalisation and trading liquidity in the VN30 basket advanced.

Gains were seen across several sectors including wholesale, insurance, real estate, securities, retail, healthcare and pharmaceuticals, banking and finance, food and beverage stocks and construction.

Large-cap gainers included Vingroup (VIC) (7 per cent), Vietcombank (VCB) (6.9 per cent), Vinamilk (VNM) (+6.9 per cent) and PetroVietnam Gas JSC (GAS) (+6.9 per cent).

“The VN-Index is recovering well from 653 points, forming strong support for the index in the short term. The index is forecast to head towards the resistance 700-720 points in several sessions, where a throwback to support 653-573 is expected with potential volatility and corrections,” said Bao Viet Securities Co.

“The index still remains under the negative influence of the unexpected movements of the COVID-19 pandemic, foreign investors’ net selling pressure and negative movements of global markets,” the company said.

Foreign investors net sold VND337.47 billion on HOSE, including Masan Group (MSN) (VND94.26 billion), Saigon General Service Corporation (SVC) (VND61.03 billion) and Vincom Retail (VRE) (VND37.42 billion). They were net sellers on the HNX with a value of VND21.99 billion.

On the Ha Noi Stock Exchange, the HNX-Index rose 3.24 per cent to close Wednesday at 100.09 points.

The northern market inched up 0.5 per cent to end Tuesday at 96.95 points.

Nearly 48.7 million shares were traded on the northern bourse, worth VND430.8 billion. — VNS


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