Shares gain on ETF portfolio
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| Investors at the stock trading floor at A Chau Bank. Shares finally rallied during yesterday's session. — VNS Photo Viet Thanh |
HA NOI – (VNS) Shares finally rallied during yesterday's session after tumbling on almost all trading days this week.
On the HCM City Stock Exchange, the VN-Index added 1.6 per cent, reaching 395.48 points.
Gainers overwhelmed losers by 163-66. These gainers included 24 of the 30 leading shares tracked by the VN30. The index, as a result, gained 1.75 per cent to reach 457.53 points.
Up to twelve of these blue chips hit their ceiling prices yesterday, most of which were added to or lifted the proportion in portfolios of exchange-traded funds (ETF). Meanwhile, Kinh Do Confectionery Co (KDC), Phu Nhuan Jewellery (PNJ) and Gemadept Logistics (GMD) saw floor prices plunge as Deutsche Bank's ETF removed them from the investment list.
Insurer Bao Viet Holdings (BVH) was notably the most favoured stock by foreign investors. ETFs increased their proportion for BVH, making the share price continuously hit the daily increase limit during the week.
Three funds to invest in the Vietnamese stock market – Market Vector ETF, FTSE Viet Nam Index and the most recent iShares – announced BVH in their investment target.
BVH started to fall continuously from July after rumours that HSBC would divest from the insurer. However, since its low of only VND25,000 on September 11, BVH has seen successive trading sessions reaching ceiling price.
Market value soared 85 per cent over Thursday to nearly VND1.8 trillion (US$85.7 million) on a volume of 101.3 million shares.
According to VietCapital Securities Co analyst Nguyen The Minh, the restructuring of investment portfolios by ETFs had also occurred on June 15, and the market could then not increase with a low level of liquidity.
"However, there are differences in the restructuring on this occasion," Minh said. "Unlike the previous changes in EFTA, the market now has passed a downtrend and shares were traded at their support level," he added.
Additionally, bank stocks have rallied after the sell-off. "These differences create the basis to show that the previous scenario cannot happen again."
However, he advised investors to close their long position in the short-term.
On the Ha Noi Stock Exchange, the HEX-Index marched 2.3 per cent higher, standing at 56.71 points.
Trading value slightly rose to VND192.5 billion ($9.1 million), while trading volume fetched 24.4 million shares.
The HNX30, representing the northern exchange's largest stocks, edged up 2.5 per cent to 106.62 points. — VNS