Saturday, August 18 2018

VietNamNews

Large-caps support shares’ rebound

Update: March, 27/2018 - 09:10
Investors follow transactions at Sài Gòn Securities Inc (SSI) in Hà Nội. — VNS Photo Đoàn Tùng
Viet Nam News

HA NOI — Shares rebounded yesterday after tumbling last Friday, staying on the uptrend for most of the trading day, driven by strong cash flow into large-cap stocks.

The benchmark VN Index on the HCM Stock Exchange gained 1.53 per cent to close at 1,171.22 points. The Index fell 1.60 per cent or 18.77 points to close at 1,153.59 points on Friday.

Meanwhile, the minor HNX Index on the Hà Nội Stock Exchange increased 1.36 per cent to end at 133.67 points. It dropped 1.62 per cent to end at 131.88 points in the previous session.

More than 273.34 million shares were traded on the two local exchanges, worth VNĐ8.6 trillion (US$377 million).

The market breadth was positive with 249 gaining stocks against 212 declining ones, while 263 other stocks ended flat.

The stock market was boosted by the growth of finance and real estate stocks. The real estate sector and finance sector indexes jumped 3.06 and 2.93 per cent, data on vietstock.vn showed.

Among the strongest gaining property developers were Development Investment Construction JSC (DIG), Đất Xanh Real Estate Service & Construction Corporation (DXG) and Phát Đạt Real Estate Development Joint Stock Company (PDR).

Banking stocks also supported the market, with JSC Bank for Investment and Development of Viet Nam (BID) jumping 6.02 per cent. Other prominent stocks also rose, supporting the uptrend of the market, including Vietinbank, up nearly 2.4 per cent, Vietcombank, increasing 2.9 per cent and HDBank, advancing 4 per cent.

Large-cap stocks also performed well, pulling the large-cap VN30 Index up 1.58 per cent to 1,146.73 points. Gainers among those stocks included Việt Nam’s biggest brewer Sabeco (SAB), dairy firm Vinamilk (VNM) and property developers Vingroup (VIC) and Novaland (NVL).

According to Bảo Việt Securities (BVSC), the US and China are seeking solutions to cool down trade war tensions. Last Friday, amid fears about a trade war between the United States and China, the Dow Jones continued losing 1.7 per cent, raising the weekly losses to more than 6 per cent - the biggest weekly drop in two years.

However, news out late Monday pointed to a more positive outlook on this issue. In particular, Treasury Secretary Steven Mnuchin said the US and China were having productive conversations and he was hopeful they would reach a new agreement.

As expected, after Trump announced tariffs on about US$50 billion annually in imports from China, the two nations soon began negotiations to cool down trade war tensions. China also unveiled a retaliation plan but the initial move would be at a modest level, with proposed tariffs on up to $3 billion of US imports, BVSC said.

“Basically, we believe there would be various changes resulting from this issue, but the moves of the two countries indicated that a trade war would not be an optimal solution for both sides. However, investors should be cautious about this risk as it could still have objective and unpredictable impacts on Vietnam stock market,” it added.

“As the VnIndex jumped and fluctuated around the record high amid strong volatility in world stocks, profit-taking pressure is likely to remain high and trigger short-term corrections,” BVSC forecast.

On the Unlisted Public Company Market (UPCoM), the UPCOM Index gained 1.19 per cent to end at 60.03 points. It declined by 0.80 per cent to 59.91 points on Friday. — VNS

 

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