VN stocks bounce back as buyers pounce

Wednesday, May 30, 2018 07:38

An investor watches stocks move on the trading screens at Tan Viet Securities Company in Ha Noi. — VNS Photo Doan Tung

Vietnamese shares rebounded strongly from a six-month low as investors decided to scoop up stocks following the recent downtrend.

The benchmark VN Index on the HCM Stock Exchange advanced 2.19 per cent or 20.43 points to close at 952.18 points. It had lost a total of 5.8 per cent in the previous three sessions.

The VN Index hit its lowest level since mid-December 2017, closing Monday at 931.75 points.

The HNX Index on the Ha Noi Stock Exchange soared 5.13 per cent or 5.51 points to end at 112.88 points, bouncing back from its last three-day fall totalling 9.1 per cent.

More than 234 million shares were traded on the two local exchanges, worth VND6 trillion (US$268 million).

Trading figures were down 18.7 per cent in volume and 15 per cent in value compared to the previous session.

The market trading condition was positive as the number of gaining stocks tripled that of declining stocks by 358 to 120.

Large-cap stocks performed well to lift the markets. The VN30 Index, which tracks the performance of the 30 largest stocks by market capitalisation, jumped 3 per cent to end at 924.90 points with 24 of the 30 stocks in the basket advancing.

Of the 20 sectors, banking, brokerage and energy were the three best-performing industries with their sector indices rising between 4.4 per cent and 6.8 per cent, data on showed.

Bank stocks were largely credited with the market’s recovery on Tuesday as 11 of the 12 listed banks saw share prices up.

Those 11 bank stocks soared at least 6.3 per cent, led by Sai Gon-Ha Noi Bank (SHB) after shares of the Ha Noi-based commercial bank leaped 9.8 per cent.

Energy and brokerage stocks also rose. Among energy firms, PetroVietnam Coating Corp (PVB) surged 9.6 per cent, while Sai Gon-Ha Noi Securities (SHS) led brokerage stocks’ uptrend, finishing 9.4 per cent higher than Monday.

According to Sai Gon-Ha Noi Securities Co, investors showed strong purchasing power when the VN Index hit the range of 900-950 points, which is expected to support the market in coming sessions.

In its daily report, Bao Viet Securities Co (BVSC) said that the strong rebound and positive liquidity partly calmed investors.

“The uptrend was strengthened in the last minutes, which could have a positive influence on the market’s trend in the next session,” BVSC said.

“This recovery partly eased investors’ fears about the market’s trends despite the existing cautiousness and doubt.”

However, BVSC warned that the VN Index may need a few more trading sessions to confirm the sustainability of its recovery. — VNS

Comments (0)