Shares rose for a second day on Friday on the two national stock exchanges as investors increased bargain hunting for large-cap stocks after the steep decline since mid-April.

Viet Nam’s benchmark VN-Index on the HCM Stock Exchange increased 2.23 per cent to close Friday’s trade at 992.87 points, extending a two-day growth to 4.63 per cent.

On the Ha Noi Stock Exchange, the HNX-Index edged up 0.73 per cent to end at 115.75 points. The northern market index rose 2.9 per cent on Thursday.

Large caps again led the market rise on Friday as 25 of the top 30 largest shares by market value and liquidity on the main bourse in HCM City advanced while only three declined.

Steelmaker Hoa Sen Group (HSG) and budget airline Vietjet Air (VJC) were the biggest gainers, rising 7 per cent, while other heavyweight shares including Vinamilk (VNM), VinGroup (VIC), Vietcombank (VCB), brewer Sabeco (SAB), Masan Group (MSN), PV Gas (GAS) and insurer Bao Viet Holdings (BVH) leapt between 2-5 per cent each.

According to Vietcombank Securities Co, prices of many good stocks have declined substantially after the previous market slump (the VN-Index lost about 18 per cent during April 17-May 30) and gained the attention of investors.

This showed in increases in liquidity in the last two sessions.

A total of 258.4 million shares worth over VND6.7 trillion (US$294.4 million) were traded in the two markets, up 15 per cent in volume and 2 per cent in value compared to the previous session.

Overall market condition was also positive with the number of gainers outnumbering the losers (292-197) while another 253 closed unchanged.

On the negative side, however, plastic shares underperformed with big companies such as Binh Minh Plastics (BMP), The Southern Rubber Industry (CSM), Da Nang Rubber (DRC) declining 1.3-2.2 per cent each.

“The recovery of the market, the improvement of liquidity and the balance of foreign trade are good news for the overall market’s outlook,” said Tran Duc Anh, a stock analyst at Bao Viet Securities Co.

Anh predicted positive movement early next week before moving sideways at the weekend.

Foreign investors were net buyers of VND53.2 billion on the HCM Stock Exchange after two net-selling sessions, but they were still responsible for net sell value of VND26.7 billion on Ha Noi’s bourse. – VNS