Vietnamese shares rose strongly on Tuesday to extend gains for a second session as investor sentiment remained positive on 2019’s corporate performances.
The benchmark VN-Index on the Ho Chi Minh Stock Exchange gained 1.24 per cent to close at 937.54 points.
The southern market index has increased by total 3.18 per cent in the last two trading days, setting its two-month high since December 14.
More than 188.4 million shares were traded on the southern exchange, worth VND4.2 trillion (US$180.2 million).
Trading figures were increases of 51.2 per cent in volume and 43.6 per cent in value from Monday’s numbers.
Large-cap stocks performed well, pulling the blue-chip VN30 Index up 1.10 per cent to 888.33 points at the end of the day.
Seven of the 30 largest stocks by market capitalisation in the VN30 basket advanced while only five declined.
Across 20 sectors on the stock market, positive investors’ confidence helped lift 17 industry indices with the best performers being banking, consumer staples, petroleum and property development.
According to BIDV Securities Corp (BSC), the market sentiment stabilised, reflected by the return of cash flow that resulted in soaring liquidity.
Investors may be looking for “opening positions in stocks with positive development prospects for 2019,” BIDV wrote in its daily report.
“Investors were able to remain upbeat in the early days of the new lunar year, which was an important factor to extend the market growth [for a second trading day],” Sai Gon-Ha Noi Securities (SHS) said.
Rising liquidity on the stock market indicated “cash flow has returned to the common stock market,” proving investors are now more interested in common stocks rather than derivative futures as “derivative investors will burden three new trading fees on February 15,” SHS said in a note.
“If good market sentiment is maintained and other large-cap stocks take the wheel to drive the market, the VN-Index may rise to test the 955-point level in the next sessions,” SHS added.
But as the VN-Index has gained substantially by total 3.18 per cent (or nearly 29 points) in the last two trading days, there will be some shakes and the benchmark may “increase marginally” and “the next level to test is 940 points.”
On the Ha Noi Stock Exchange, the HNX Index on the Ha Noi Stock Exchange was up 0.76 per cent to finish at 106.04 points, totalling a two-day rally of 2.61 per cent.
The northern market index has risen total 3.64 per cent since the end of January. Nearly 36 million shares were traded on the northern bourse on Tuesday, worth VND447 billion. — VNS