VN-Index climbs to eight-month peak

On the Ho Chi Minh Stock Exchange (HoSE), on which the VN-Index is based, more stocks fall at 217, compared to 187 that rose. However, with 16 mostly non-blue chip stocks hitting their ceiling prices (highest they can go in a session), the benchmark index closed at its highest point since late February.

According to the latest report by brokerage BVSC, individual stocks are likely to see more significant movements in prices as listed firms publish their third quarter financial reports.

Deposit interest rates across all commercial banks have generally decreased in September for both 6-month and 12-month terms, and this will continue to support the equity market in reaching 920 points by the end of the week, BVSC said, citing market data from analytics firm Fiin Group.

The State Bank of Vietnam also lowered base rates by 0.5 percent last week, continuing efforts to see the economy through the Covid-19 crisis and raise GDP growth by the year-end.

Total trading volume on the HoSE this session was 5 percent higher than the last, reaching VND8.78 trillion ($377.87 million), well above last month’s average of VND6.6 trillion.

Contrary to the performance of stocks on the general market, blue-chips were a drag this session. The VN30-Index for HoSE’s 30 largest caps shed 0.06 percent, with 16 losing and 11 gaining.

MSN of food conglomerate Masan Group led gains with 6.7 percent, followed by ROS of construction firm FLC Faros, up 3.9 percent, SBT of agricultural firm TTC-Sugar, up 3.4 percent, and MWG of electronics retailer Mobile World, up 2.3 percent.

VCB of state-owned lender Vietcombank was the only bank in the green this session, up 1.3 percent.

VIC of private conglomerate Vingroup, HoSE’s largest cap, gained 0.8 percent this session. Its subsidiaries, VHM of real estate developer Vinhomes and VRE of mall operator Vincom Retail, also added 0.9 percent and 1.1 percent respectively.

The private banking sector saw some of the worst VN30 performers. STB of Sacombank and TCB of Techcombank topped losses with 3.5 percent and 2.7 percent respectively, followed by VPB of VPBank and EIB of Eximbank, down 1.7 and 0.6 percent. HDB of HDBank kept its opening price.

Among state-owned banks, MBB of mid-sized Military Bank shed 1.4 percent and CTG of VietinBank, 0.7 percent, while BID of BIDV remained flat.

Other major losers included POW of electricity generator PetroVietnam Power, down 1.9 percent, SSI of brokerage Saigon Securities Inc., down 1.7 percent, TCH of truck dealer Hoang Huy Group, down 1.6 percent, and HPG of steelmaker Hoa Phat Group, also down 1.6 percent.

Meanwhile, the HNX-Index for the Hanoi Stock Exchange, home to mid- and small-capped stocks, shed 1.19 percent, while the UPCoM-Index for the Unlisted Public Companies Market edged up 0.06 percent.

Foreign investors were net sellers for the tenth consecutive session to the tune of over VND260 billion on all three bourses. Again, the most net sold stocks were VNM of Vinamilk, which rose 1 percent, and CTG of VietinBank.