VN Index rises for third day

12-Jan-2018 Intellasia | VNS | 6:00 AM Print This Post

Vietnamese shares finished Wednesday on a mixed note, hit by strong profit-taking. Energy shares continued to benefit from rising oil prices.

The benchmark VN Index on the HCM Stock Exchange climbed 0.44 per cent to close at 1,038.11 points, narrowing its growth from the intraday peak of 1.1 per cent.

The southern market index has gained total 2.5 per cent after the last three trading sessions.

Meanwhile, the HNX Index on the Hanoi Stock Exchange fell 0.18 per cent to end at 121.93 points. It had risen a total of 2.7 per cent in the previous two sessions.

Market trading liquidity reached a record high with more than 464.3 million shares being traded on the two exchanges. They were worth VND10.6 trillion (US$471.2 million).

The trading figures increased by 12.3 per cent in volume and nearly 15 per cent in value compared to Tuesday.

The stock market was buoyed by strong growth of energy firms, whose share values were supported by the increase of crude prices.

Brent crude added 0.4 per cent to trade above $69 a barrel, having gained total 12 per cent since mid-December and nearly 56 per cent since June 21, 2017.

Vietnamese energy shares recorded strong growth rates, such as PetroVietnam Mud Drilling (PVC), PetroVietnam Drilling and Well Services (PVD) and PetroVietnam Technical Services (PVS).

These energy firms saw their share values jump at least 5 per cent at the end of the session.

Strong cash flow that boosted trading liquidity also assisted securities stocks to increase. FPT Securities (FTS) and Viet Dragon Securities (VDS) surged at least 6.5 per cent while other large-cap securities firms, such as Saigon Securities Inc (SSI) and VNDirect Securities (VND), also ended positive.

In the negative territory, banks, insurance companies and rubber producers underperformed as investors locked in profits that resulted from recent growth in these stocks.

Decliners among those stocks included Vietcombank (VCB), Vietinbank (CTG), Asia Commercial Bank (ACB), Bao Viet Holdings (BVH), BIDV Insurance Corp (BIC), Sao Vang Rubber JSC (SRC) and Da Nang Rubber JSC (DRC).

According to Sai Gon-Hanoi Securities Company (SHS), the stock market has been hit by profit taking on three consecutive sessions.

“That could signal the market has reached its short-term peak and needs a few sessions to decline and settle down before going up again,” SHS wrote in its daily report.

“But the new record-high trading liquidity and gainers outnumber losers, proving that investors are still trading positively and their sentiment remains upbeat.”

Thus, the VN Index is expected to rise and test the level of 1,040 points again on Thursday, SHS said.


Category: Stocks, Vietnam

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