VN-Index inches up after steep plunge

The VN-Index, which is a capitalization-weighted index of all the companies listed on the Ho Chi Minh City Stock Exchange (HOSE), closed at 970 points on Friday, up 24.19 points, or 2.56 percent, from Thursday.

The VN30-Index, representing the 30 largest stocks in terms of capitalization, increased to over 943 points. 

The HNX-Index on the Hanoi Stock Exchange went up by 2.41 percent and UPCOM-Index for unlisted companies by 1.37 percent.

Blue chips led the gain with PetroVietnam Gas (GAS) increasing by VND7,300 (31 cents), or 6.5 percent; FPT Corporation (FPT) by VND1,100 (4.7 cents), 2.6 percent; Vingroup conglomerate (VIC) by VND3,000 (13 cents), 3.22 percent; and Vietcombank (VCB) by VND2,200 (9.4 cents), 3.8 percent.

On HOSE, 249 stocks gained, while 57 were in the red. In the VND30-Index, 26 stocks increased and 3 decreased.

Market liquidity reached over VND6 trillion ($257.2 million), with VND5 trillion ($214.3 million) from HOSE alone.

Foreigners’ net selling reached over VND300 billion ($12.8 million) Friday, up from the VND260 billion ($11.1 million) Thursday. 

On HOSE, foreigners bought 11.96 million stocks valued at VND272.93 billion ($11.6 million). 

The VN-Index had fallen by 48 points to the second lowest  point this year on Thursday, swiping away over VND150 trillion ($6.5 billion) from the HOSE.

Experts said that the drop came after a sell-off that began on Wall Street rippled across Asian markets as concerns over the impact of rising interest rates intensified.

Nguyen The Minh, analysis director at stock company Yuanta, said Thursday that investors' fear of the changes in the world’s stocks was the main reason for the drop in Vietnamese benchmark index.

“When the market falls because of investors reluctance, it usually comes back very quickly,” he told VnExpress.