Wednesday, August 12 2020

VietNamNews

Shares rise thanks to banking stocks

Update: January, 11/2020 - 07:20

 

Customers at a branch of Vietinbank (CTG) in Hà Nội. On Friday, banking stocks maintained their gains until the end of the trading session, strongly supporting the indices. Best performers included Bank for Investment and Development (BID), Vietinbank (CTG) and Vietcombank (VCB). — cafef.vn

HÀ NỘI — Vietnamese shares advanced on Friday, propelled by banking-financial companies.

The benchmark VN-Index on the Hồ Chí Minh Stock Exchange advanced 0.87 per cent to close at 968.54 points.

More than 222.1 million shares were traded on the southern bourse, worth VNĐ5 trillion (US$224.3 million).

The index advanced 1.18 per cent to close Thursday at 960.15 points.

Market breadth was neutral, with 163 stocks gaining and 162 declining, while 50 ended flat.

On Friday, banking stocks maintained their gains until the end of the trading session, strongly supporting the indices. The best performers in the group included Bank for Investment and Development (BID), Vietinbank (CTG) and Vietcombank (VCB).

Other large-caps maintained the rally, including insurer Bảo Việt Holdings (BVH), PetroVietnam Gas JSC (GAS), steel maker Hòa Phát Group (HPG), real estate developer Vingroup (VIC), dairy firm Vinamilk (VNM), brewery Sabeco (SAB), retailer Mobile World Group (MWG) and Vinhomes (VHM).

In contrast, petroleum stocks performed poorly. A series of stocks sunk such as PetroVietnam Coating Corporation (PVB), PetroVietnam Construction Corporation (PVC), PetroVietnam Drilling and Well Services Co (PVD) and PetroVietnam Technical Services Corporation (PVS). PetroVietnam Gas JSC (GAS) was the only gainer in the petroleum stock group on Friday.

The VN-Index experienced three advancing sessions and two declining sessions this week before settling at 968.54 points, up by 0.35 per cent from last week.

On a sector basis, 11 of the 25 sectors saw share prices fall, including real estate, information and technology, healthcare, oil and gas, agriculture, rubber production and construction.

On the opposite side, 14 of 25 sectors improved, including wholesale, insurance, securities, retail, banking, seafood production, construction materials and logistics.

On the Hà Nội Stock Exchange, the HNX-Index climbed 0.96 per cent to end at 102.22 points on Friday.

Nearly 36.6 million shares were traded on the northern market, worth VNĐ398.6 billion.

The northern index climbed 0.92 per cent to end at 101.25 points on Thursday.

Foreign investors net bought VNĐ1.07 trillion on the HOSE, including PetroVietnam Low Pressure Gas Distribution (PGD) (VNĐ1.02 trillion), Vietinbank (CTG) (VNĐ55.08 billion) and Hòa Phát Group (HPG) (VNĐ21.11 billion). They were net sellers on the HNX with a value of VNĐ6.23 billion.

In the last three years, foreign investors were the net buyers of nearly VNĐ2.7 trillion, VNĐ12.25 trillion, and VNĐ1 trillion in 2019, 2018, and 2017, respectively.

According to Bảo Việt Securities Co, stock exposure should be maintained at 30-35 per cent of the portfolio. Investors might consider selling stocks at resistance zone 969-972 points.

If the market penetrates through resistance zone 970-972 points, investors may consider raising stock exposure at market corrections later on, the company said. — VNS

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