Earnings season cushions market sentiment

July 16, 2019 - 23:38

Market sentiment was positive after some banks announced their quarterly and six-month earnings reports.

The view of HCM City from the top of property developer Vingroup's Vincom Landmark 81 building. The firm is among large-cap companies expected to release good quarterly earnings reports. - VNA/VNS Photo Anh Tuấn

HÀ NỘI – Vietnamese shares rose on Tuesday as investors anticipated more positive quarterly earnings reports from large-cap companies.

The benchmark VN-Index on the Hồ Chí Minh Stock Exchange gained roughly 1 per cent to close at 982.11 points.

The VN-Index fell 0.29 per cent on Monday.

More than 174.6 million shares were traded on the southern bourse, worth VNĐ4.52 trillion (US$194.5 million).

Market sentiment was positive after some banks announced their quarterly and six-month earnings reports, MB Securities Co (MBS) said in its daily report.

Last week, Vietcombank (VCB) and Sacombank (STB) reported they had fulfilled 55 per cent of their full-year pre-tax profit targets.

Investors bet other banks would release good figures for their performances in the second quarter of the year.

The earnings season had begun and companies with good results often announced their numbers first to bolster market sentiment, MBS said.

Banks, Vingroup companies, food and beverage firms and retailers were expected to drive the market up, MBS added.

Banking, real estate, retail and food and beverage were the four best-performing sectors, data on vietstock.vn showed.

The four sector indices rose between 0.5 per cent and 2.3 per cent.

Leading companies in the four industries also helped boost the large-cap VN30-Index up 0.82 per cent to end Tuesday at 880.91 points.

Two-thirds of the 30 largest stocks by market value and trading liquidity in the VN30 basket advanced, including Vietcombank (VCB), Vinhomes (VHM), Vincom Retail (VRE), Vingroup (VIC), Military Bank (MBB) and retailer Mobile World (MWG).

The VN-Index returned to its uptrend, MBS said, adding expectations for good earnings reports of banks and other large-cap firms would bring the index back to its previous peak in May of nearly 990 points.

In addition, international markets also moved in positive territory after US officials said they might travel to Beijing to continue trade talks if discussions this week went well.

Foreign investors’ net-buying Vietnamese stocks also supported the market. Foreign net-buy on Tuesday reached VNĐ456 billion on the southern market.

On the Hà Nội Stock Exchange, the HNX-Index gained 0.22 per cent to end at 105.85 points.

The northern market index lost 0.23 per cent on Monday.

More than 26 million shares were traded on Hà Nội’s stock market, worth VNĐ364.5 billion. – VNS