Market rises on strong local investments

May 26, 2021 - 07:01

Shares ended higher on Tuesday on local investors' buying force, while foreign investors continued to flee from the stock market. 

Inside Saigon Beer - Alcohol - Beverage Corporation's processing plant. The company shares jumped 2.6 per cent on Tuesday, supporting the market benchmark to break the 1,300 point-level. — Photo

HÀ NỘI — Shares ended higher on Tuesday on local investors' buying force, while foreign investors continued to flee from the stock market. 

The market benchmark VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) jumped 10.6 points, or 0.82 per cent, to 1,308.58 points. The index broke the important level of 1,300 points 30 minutes after the market opened in the morning trade. 

The market breadth was still positive as 212 stocks edged higher, while 193 stocks slid and 60 stocks ended flat. However, the liquidity was lower than yesterday with domestic investors pouring over VNĐ21.2 trillion in the market, equivalent to a trading volume of nearly 679.1 million shares. 

Trần Xuân Bách, senior stock analyst from Bảo Việt Securities Company, expected that if the benchmark successfully breaks the resistance zone of 1,285 points, it is likely to head toward a strong resistance territory of 1,350 - 1,380 points in the short term. 

As there will not be much information supporting the market and stock groups, the market might continue to face strong division between stocks' lines and it will be dominated by some large-cap stocks, according to Bách. 

He recommended that investors should maintain the proportions of stocks in portfolios at 30 - 45 per cent, and give priority to long/mid-term positions. 

The market still received support from some big stocks. The VN30-Index, which tracks 30 biggest stocks in market capitalisation on HoSE, rose 0.95 per cent to 1,444.01 points. Of the VN30 basket, 18 stocks climbed, while only eight stocks fell and four stocks stayed unchanged. 

Stocks from banking and material sectors were leading the market trend with Vietcombank (VCB) the biggest gainer, up 2.46 per cent. 

MBBank (MBB), Southeast Asia Commercial Joint Stock Bank (SSB) and JSC Bank For Investment and Development of Vietnam (BID) were other bank stocks posting big gains, up more than 1.5 per cent. SSB shares even hit the maximum daily gain of 7 per cent. 

Hòa Phát Group (HPG) and Saigon Beer - Alcohol - Beverage Corporation (SAB) from material sectors also increased more than 2.6 per cent. 

Gains in gas and oil stocks on higher international prices also supported the market's rally, with PetroVietnam Gas JSC (GAS) up 1.1 per cent, PetroVietnam Technical Services Corporation (PVS) up 3.65 per cent and PetroVietnam Drilling & Well Services Corporation (PVD) up 2.49 per cent. 

On the Hà Nội Stock Exchange (HNX), the HNX-Index reversed its morning course to finish higher in the afternoon trade. The index rose 0.42 per cent to 301.59 points, helped by gains in large-cap stocks. The HNX30-Index, tracking 30 biggest stocks on the exchange, climbed 0.86 per cent to 457.42 points. 

During the session, nearly 131.1 million shares were traded on HNX, worth nearly VNĐ3 trillion. 

However, foreign investors stayed away from the country's stock market as they net sold a total value of VNĐ114.46 billion on both exchanges. 

Of which, they net sold a value of VNĐ86.3 billion on HoSE and a value of VNĐ28.16 billion on HNX. VNS