Monday, December 5 2016

VietNamNews

VN-Index approaches 640 benchmark

Update: July, 15/2015 - 09:06

A customer makes transactions at Sai Gon Securities. The VN-Index finished near the 640-point benchmark yesterday. — VNS Photo Viet Thanh

HA NOI (VNS) — The VN-Index is nearing the 640-point benchmark, as it added another 5 points or 0.73 per cent yesterday to close the session at 638.69 points.

Profit-taking did not negatively impact on the market. The buying power remained strong among both domestic and foreign investors.

Both market volume and liquidity increased 10 per cent over Monday, totalling more than 155 million shares worth VND2.86 trillion (US$131.2 million).

The foreign sectors continued to pick up another net buy of VND69.2 billion ($3.2 million) in shares yesterday on the HCM Stock Exchange.

"If foreign investors keep buying in while the domestic sector maintains current demand, we believe the growing momentum will continue," analysts at KIS Vietnam Securities Co. wrote.

However, they said many large-cap stocks surged into the overbought territory and were exposed to risks of correction.

Blue chips were again the driving force on the market yesterday, as shown in high growth of 0.92 per cent on the VN30, which tracks the top 30 shares by market value and liquidity, compared with a 0.73 per cent rise of the VN-Index.

Insurers continued their impressive performance yesterday with Bao Viet Holdings (BVH), BIDV Insurance (BIC) and Bao Minh Insurance (BMI) being traded at or around the ceiling price.

Meanwhile, bank stocks slowed down. Only Eximbank (EIB), BIDV (BID) and Sacombank (STB) sustained growth of 2 to 4 per cent each. Military Bank (MBB) and Vietcombank (VCB) closed flat while Vietinbank (CTG) tumbled.

According to analysts at BIDV Securities Co., the market will not surge as strongly as in the previous period. Leading stocks such as banks, securities, and insurers have climbed significantly while foreign net buying shows signs of weakening in the next sessions.

"Correction may come in the next few sessions," the analysts wrote.

On the HaNoi Stock Exchange, the HNX-Index also inched up 0.18 per cent to end yesterday at 88.74 points as the advancers more than doubled the decliners.

Liquidity also improved here with 73 million shares worth nearly VND895 billion ($41.1 million) traded by the end of the session, up more than 40 per cent in both volume and value over Monday's levels.

Foreigners also bought a net value of nearly VND25 billion ($1.2 million) worth of shares yesterday.

South Books and Education Equipment (SMN) debuted 4.4 million shares, equivalent to a charter capital of VND44 billion ($2 million) in the Ha Noi market. SMN closed the first trading day at VND12,000 each with 1,500 shares traded. This is the ninth new listing share this year and 359th stock here. — VNS



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