Monday, July 22 2019

VietNamNews

VN stocks up, earnings hopes raise market sentiment

Update: July, 05/2019 - 07:16
Inside a pork plant of Masan Group. The company's shares gained 0.8 per cent on Thursday. — VNA/VNS Photo Vũ Sinh

HÀ NỘI — Vietnamese stocks soared as confidence rose in companies with expectations for gains in quarterly earnings reports.

The benchmark VN-Index on the Hồ Chí Minh Stock Exchange surged 1.32 per cent to end Thursday at 973.04 points – the highest since May 27.

The VN-Index had lost total 0.55 per cent in the previous two trading days.

Market trading liquidity increased strongly from Wednesday.

Data showed nearly 190 million shares were traded on the southern bourse, worth VNĐ4.38 trillion (US$188.5 million).

The figures were 39 per cent and 26.6 per cent higher in trading volume and value, respectively, compared to the previous day.

According to Thành Công Securities Co (TCSC), the improvement of the market sentiment and liquidity was attributed to the inflow of capital.

Capital was differentiated and directed into the groups where listed companies were expected to report growth in their quarterly earnings, TCSC said in its daily report.

Some sectors with such expectations are banking, food and beverage, and real estate – represented by “Vin” stocks.

The indices of the banking, real estate and food and beverage were up between 0.3 per cent and 2.6 per cent, data on vietstock.vn showed.

Topping the banking sector by share gains were Vietcombank (VCB), which jumped 4.2 per cent, and Techcombank (TCB), which advanced 2.9 per cent.

“Vin” stocks – consisting Vingroup (VIC), Vincom Retail (VRE) and Vinhomes (VHM) – increased by 1-3.7 per cent.

The three biggest firms in the food industry – Vinamilk (VNM), Sabeco (SAB) and Masan (MSN) – also marched forward as they rose between 0.2 per cent and 1.1 per cent.

In addition, investors’ confidence was boosted by the positive gains in US stocks before the US entered the national holiday, Sài Gòn-Hà Nội Securities (SHS) said.

The large-cap stock index VN30 grew strongly to boost the market, adding 1.17 per cent to end at 879.72 points.

In the VN30 basket, 26 of the 30 largest stocks by market capitalisation and trading liquidity progressed while only two declined.

The strong improvement of trading liquidity has enhanced the market’s short-term uptrend, SHS said.

But capital must keep flowing in the market more and more in the coming days if the VN-Index aims to move higher, SHS added.

In the next few days, the VN-Index may break the resistance of 975 points and approach the previous peak of 1,000 points, the stock broker forecast.

On the Hà Nội Stock Exchange, the HNX-Index rose 0.64 per cent to end at 104.34 points, totalling a two-day increase of 0.84 per cent.

Nearly 25 million shares were traded on the northern bourse, worth VNĐ323 billion. — VNS

 

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