Bank stocks underpin VN Index

18-Jul-2019 Intellasia | The Saigon Times | 6:02 AM Print This Post

Due to supporting news on business results and foreign ownership limit expansion, bank stocks continued the uptrend today, July 16, sending the VN Index of the Hochiminh Stock jumping after a two-day loss.

Closing the session, the main index leapt 9.58 points, or 0.99 percent, from the session earlier to close at 982.11. Transaction on the HCM City market sharply improved as volume and value rose 16 percent and 27 percent at 174.6 million shares worth VND4.5 trillion, respectively, in which construction firm ROS was the volume leader with 9.4 million shares traded.

Eight out of ten listed banks gained ground, except for HDB that lost slightly and EIB that closed at the reference level.

VCB and BID were the top gainers, soaring 2.9 percent and 3.8 percent at VND77,200 and VND34,500 on matching volumes of 1.9 million shares and 3.2 million shares, respectively. Earlier, VCB had set a record high in pre-tax profit in the second quarter of this year while BID had been selected for the VN30 basket in the July review.

Bank and insurance sectors were the key driving factor of the stock market, gaining 1.7 percent and 0.5 percent. Other sectors that advanced included retail, food and beverage, building materials, plastics and chemicals.

According to some securities companies, the stock market is entering the earnings-report season, so investors are switching attention to sectors they expect to produce good quarterly results. Besides, global markets gave a little bit support as the United States stock market continued to set a historic peak.

Analysts at Saigon-Hanoi Securities JSC in a report said that as banking stocks rallied in recent sessions, the uptrend is expected to support the market in the near future.

Nguyen Trung Du, director of the business development section at VNDirect Securities Co., told that the possibility of the VN Index reaching 1,000 points may happen this week.

“However, we should not be too focused on the index but should focus on opportunities. The positive trend means there are chances to find success in many different industries. Personally, I still prefer seeking opportunities in heavyweight stocks such as Mobile World Group (MWG), FPT Corporation (FPT) and Vietcombank (VCB),” Du said.

The HNX-Index of the Hanoi Stock Exchange added 0.23 point, or 0.22 percent, at 105.85, led by stocks in the banking, securities and petroleum sectors. Lender SHB was the most liquid stock with matching volume of 2.8 million shares, followed by petroleum technical service firm PVS with 2.2 million shares.


Category: Stocks, Vietnam

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