Viet Nam's stock market extended gains on Tuesday on the back of energy and seafood shares.

The benchmark VN-Index on the Ho Minh Stock Exchange (HoSE) increased by 0.19 per cent, to 1,362.43 points. Market breadth was positive as 217 stocks climbed while 157 declined.

The VN-Index had increased by 1.37 per cent, to close Monday at 1,359.86 points.

The liquidity continued to improve with nearly VN23 trillion (US$1 billion) poured into the southern bourse, equivalent to a trading volume of 716.5 million shares.

The VN30-Index, which tracks the 30 biggest stocks in market capitalisation on the southern market, lost 0.23 per cent to 1,494.41 points.

Of the VN30 basket, 12 stocks jumped while 17 slid, and one stayed unchanged.

PetroVietnam Gas JSC (GAS) and Vinamilk (VNM) were the two strongest gainers in the VN-30 basket, rising more than 3 per cent and nearly 2 per cent, respectively. On the other hand, Masan Group (MSN), Novaland (NVL) and Khang Dien House (KDH) were the ones that corrected, losing more than 1 per cent.

The oil and gas group performed well at the end of the session, with Petrovietnam General Services JSC Corporation (PET), PetroVietnam Drilling & Well Services Corporation (PVD) all reaching the ceiling prices, while PV OIL (OIL), Binh Son Refinery (BSR), PetroVietnam Technical Services Corporation (PVS) all advanced more than 6 per cent.

The seafood group also made strong gains with Minh Phu Corporation (MPC), Vinh Hoan Corporation (VHC), and Mekong Fisheries Joint Stock Company (AAM) all gaining more than 1 per cent.

KB Securities Vietnam said the market had entered a recovery period thanks to investors’ confidence in the Government's timely pandemic control policy, accelerating the vaccination progress.

“However, at the present time, the COVID-19 pandemic still develops complicatedly so the market is still facing the risk of falling again,” it said.

“From March 2020, the market has witnessed four correction phases. Except for the quick and unexpected adjustment at the end of March 2020, the three correction phases in June 2020, January 2021 and July 2021 were all quite expected,” said La Giang Trung, Director of Passion Investment Fund Management Company.

“In July 2021, VN-Index recorded a 13 per cent drop. It is likely that the index has created a short-term bottom. After each correction, the index often makes an increase of about 30 per cent. Therefore, VN-Index could reach 1,600-1,700 points by the end of this year,” he said.

The HNX-Index on the Ha Noi Stock Exchange (HNX) also climbed 1.33 per cent to 335.08 points.

Nearly 161.5 million shares were traded on the northern market exchange, worth VND3.9 trillion.

The northern market index had climbed 1.6 per cent to close at 330.68 points on Monday. — VNS