|Investors watch market developments at the VP Bank Securities trading floor. The VN-Index added another 0.4 per cent to close yesterday's session at 607.4 points. — VNS Photo Truong Vi
HA NOI (VNS) — Shares advanced for a second day on Viet Nam's two exchanges yesterday, led by insurance companies.
On the HCM Stock Exchange, the VN-Index added another 0.4 per cent to close yesterday's session at 607.4 points, slower than Thursday's increase of 1.5 per cent.
In Ha Noi, the HNX-Index also edged up 0.3 per cent to end at 82.2 points. It rose 1 per cent on Thursday.
Insurers were the biggest gainers yesterday with five of total seven listed firms advanced.
Bao Viet Holdings (BVH), one of the 10 biggest stocks by market capitalisation on the HCM City's exchange, climbed nearly 2 per cent. Others like Bao Minh Insurance (BMI), BIDV Insurance (BCI), Petrolimex Insurance (PGI), Post - Telecommunication Insurance (PTI) and PVI Holdings (PVI) increased between 1 per cent and 4 per cent.
None of these companies have released their third-quarter earnings results so far but analysts expected good sales for insurance businesses thanks to growth in non-life insurance policies for pupils and students at the start of new school year in September.
Meanwhile, results for banks were mixed yesterday.
Vietcombank (VCB), the second biggest lender in the stock market, rose for a second day by over 2.1 per cent to close at VND47,700 (US$2.13) a share, while Military Bank (MBB) also grew 2.9 per cent.
However, others like Vietinbank (CTG), Sacombank (STB) and Bank for Investment and Development of Vietnam (BID) edged down 0.4-0.7 per cent.
Large companies including dairy giant Vinamilk (VNM) and real estate developer VinGroup (VIC) also retreated 0.8 per cent and 1.1 per cent, respectively. Both had climbed strongly on Thursday.
"Liquidity continued to decline and this is fueling investors' worries about the duration of market rises," said analysts at Investment Vietnam Securities Co (IVS).
A total of 128.4 million shares worth nearly VND2.5 trillion ($111.6 million) were traded in the two markets yesterday, down 7 per cent in volume and 3 per cent in value compared with Thursday's levels. Liquidity also decreased in the previous two sessions.
The current rally was driven by large-cap stocks and many of which have climbed over 20 per cent in the past month that might bring risks in the current period, IVS's analysts wrote in a report.
These analysts predicted the VN-Index would fluctuate around 605-610 points in the coming sessions. — VNS