Slower inflation boosts shares
HA NOI — National stocks rallied after monthly inflation rates for Ha Noi and HCM City were announced. Inflation inched up 0.19 per cent in the capital and 0.12 per cent in HCM City.
"These are lower rates compared to the first two months of the year and the lowest for 19 months," said Hoa Binh Securities Co analyst Vu Thai Ha.
On the HCM City Stock Exchange, the VN-Index rose by 0.5 per cent to 440.29 points while the VN30 increased by more than 0.8 per cent, reaching 501.29 points.
Market value totalled nearly VND992.5 billion (US$47.2 million), 7.9 per cent higher than Monday's level. The volume of trades fetched more than 62.7 million shares.
Of the 10 leading shares by capitalisation, only Sacombank (STB) and insurer Bao Viet Holdings (BVH) tumbled during yesterday morning's trade. However, the number increased to four stocks at the end of the session, adding software developer FPT (FTP) and food processor Masan (MSN).
Bao Viet continued to bottom out while technology investment firm Sacom (SAM) was the most heavily traded stock in HCM City with around 3.8 million shares changing hands. It retreated by 1.8 per cent.
On the Ha Noi Stock Exchange, the HNX-Index added more than 2 per cent, reaching 74.39 points.
The value of trades edged up by 5.6 per cent compared to the previous day's level, to VND797 billion ($38 million) on a volume of 78.3 million shares.
With 11.2 million shares exchanged, Habubank (HBB) returned as the most active code nationwide.
"On a technical perspective, the medium-term trend of rising stocks has been re-established," Ha said. With yesterday's session, doubts over a rally were removed and replaced by a new confidence.
"However, trading volume did not show significant improvement, proving that new flows of money were facing difficulties entering the market," he added.
Ha also suggested investors to increase stocks in their portfolios. — VNS