Shares move up, may break peak

March 13, 2018 - 01:00

Vietnamese shares rallied on Monday due to strong growth among blue-chips, but the weakened significantly towards the closing minutes.

An investor monitors market fluctuations at the MB Securities head office in Hà Nội. — VNS Photo Việt Thanh
Viet Nam News

HÀ NỘI — Vietnamese shares rallied on Monday due to strong growth among blue-chips, but then weakened significantly towards the closing minutes.

The benchmark VN-Index on the HCM Stock Exchange inched up 0.26 per cent to close at 1.126,29 points, recovering from a fall of 0.07 per cent on Friday.

On March 12 eleven years ago, the benchmark VN-Index recorded an all-time peak of 1,170 points. Analysts believe the rising momentum will continue and allow the index to surpass this record on rising investor confidence in the market outlook.

According to Bảo Việt Securities Company (BVSC), the index is still expected to surpass the peak set before the Tết holiday of 1,130 soon to move towards 1,150 or even the record high at 1,170- 1,180 in the short term.

The minor HNX Index advanced 1.16 per cent to end at 129.06 points. The northern market index ended up 1.14 per cent on Friday.

More than 310.9 million shares were traded on the two local bourses, worth VNĐ8.5 trillion (US$375 million).

On the two stock markets, the market breadth was negative with 268 declining stocks against 214 gaining ones, while 249 other shares ended flat.

The UPCOM Index on the Unlisted Public Company Market (UPCoM) fell 0.1 per cent to 61.31 points. The index added 0.88 per cent on Friday.

On Monday, foreign investors were net buyers of VNĐ668.64 billion on HOSE, focusing on PDR (VNĐ374.3 billion), VIC (VNĐ144.3 billion) and VRE (VNĐ127 billion). On contrary, they net sold VNĐ1.72 billion on the HNX.

Bank stocks led the market up with prominent stocks such as Việt Nam Joint Stock Commercial Bank for Industry and Trade (CTG) (3.24 per cent), Bank for Foreign Trade of Việt Nam (VCB) (1.41 per cent), Sài Gòn Thương Tín Commercial Joint Stock Bank (STB) (3.57 per cent) and JSC Bank For Investment And Development Of Việt Nam (BID) (3.6 per cent).

Particularly, the decline of large cap stocks dragged the index down, including Viet Nam Dairy Products Joint Stock Company (VNM), Bình Minh Plastics Joint Stock Company (BMP) and Vingroup Joint Stock Company (VIC).

Lately, MV Index Solutions announced the results of the quarterly MVIS Việt Nam index review – the selected index of the VanEck Vectors Việt Nam ETF (V.N.M ETF). VRE is the only stock to be added to the VFM ETF portfolio in this review.

BVSC said VRE shares will account for 5 per cent stake in the V.N.M ETF portfolio, or the fund will purchase US$21.17 million worth of VRE shares (about 8.7 million shares).

Though VRE has been listed on the stock market for only 4 months, the ticker was “specially” added to the portfolio by V.N.M ETF (minimum requirement is a six-month listing).

With this benefit, VRE has gained over the past 3 consecutive sessions. After this portfolio review, the number of Việt Nam shares in the V.N.M ETF portfolio will increase to 19 and account for 75.32 per cent of the portfolio, BVSC said.

BVSC added that market sentiment is forecast to stay cautious in the next sessions as investors are waiting for the review of the two ETFs this weekend. The market should not see dramatic movement in the short term. — VNS