Shares gain for second day but caution persists

March 23, 2023 - 05:17
Shares climbed for a second day as good performace of global stock markets prior to the Fed’s announcement of rate hike supported local investors’ psychology.
An investor watches share prices on a tablet. Shares rose a second day on both exchanges. — VNA/VNS Photo

HÀ NỘI — Shares climbed for a second day as good performace of global stock markets prior to the Fed’s announcement of a rate hike supported local investors’ psychology.

The VN-Index on the Hồ Chí Minh Stock Exchange increased by 0.79 per cent to close Wednesday at 1,040.54 points. It rose nearly 1 per cent in the previous session.

The market breadth was positive with 203 stocks gaining, 170 losing while the other 128 closed flat.

Although the trading was cautious, increasing liquidity in buying force at high prices led to an improvement in stock prices, especially in the banking and real estate industries.

Nearly 459 million shares worth VNĐ8.7 trillion (US$369 million) were traded, down 3 per cent in volume but up 4 per cent in value compared to Tuesday’s level.

Property and banking stocks led the market growth with average growth of 1.5 per cent each, tracked by

Seven of the top 10 shares lifting the VN-Index came from these two groups. They included Vietcombank (VCB), Vietnam Prosperity Bank (VPB), BIDV (BID), Vietinbank (CTG), Eximbank (EIB), Hồ Chí Minh Development Bank (HDB) and Vinhomes (VHM) with growth of between 0.5 per cent and 5 per cent each.

On the Hà Nội Stock Exchange, the HNX-Index edged up 0.42 per cent to end at 203.96 points. The northern bourse’s index increased 0.74 per cent on Tuesday.

More than 50 million shares worth VNĐ929 billion were exchanged, slightly lower than the previous session.

“The market may continue to recover in the next session to re-explore the resistance zone of 1,040 – 1,045 points for the VN-Index. With the support signal not yet clear, it is still necessary to consider the possibility that the market will retreat at this area and step back,” said Phương Nguyễn, a market analyst at Viet Dragon Securities Co, in a note.

Phương suggested investors be cautious and observe the supply and demand movements at the resistance zone, and at the same time can take advantage of the technical recovery of the market to restructure the portfolio in the direction of minimising risks.

Foreign traders continue to buy Vietnamese stocks. They were responsible for a total net buy value of more than VNĐ195 billion shares on both exchanges, an increase of 67 per cent compared to their net buy value on Tuesday. — VNS