VN-Index resurges as money pours into large caps

The Ho Chi Minh Stock Exchange (HoSE), on which the VN-Index is based, was the complete opposite of what it had been only two days ago, when the market plunged 5.11 percent. An overwhelming 425 stocks gained compared to 42 that lost.

Total trading volume abated to VND15.76 trillion ($683.64 million), the lowest the bourse has seen in the past month.

According to brokerage BVSC, having seen the worst losing session in six months Tuesday, the VN-Index was bound to see a technical pullback by the end of the week.

With prevalent arbitrage activity on the market, the VN-Index is expected to see strong fluctuations in the coming days, BVSC added.

The VN30-Index this session outperformed the general market, surging 3.14 percent, with 27 stocks gaining and only three losing.

Topping gains this session were ROS of construction firm FLC Faros and TCH of real estate developer Hoang Huy Group, both rising 7 percent to their ceiling prices. They were followed by HPG of steelmaker Hoa Phat Group, up 6 percent, and NVL of real estate developer Novaland, with 5.4 percent.

Private banks were also some of the best performers. VPB of VPBank climbed 5.8 percent, STB of Sacombank 5.3 percent, TCB of Techcombank 4.9 percent, HDB of HDBank 1.2 percent, while only EIB of Eximbank lost 1 percent.

For state-owned banks, VCB of Vietcombank surged 3.9 percent, CTG of VietinBank 3.8 percent, BID of BIDV 2.2 percent, while MBB of mid-sized Military Bank gained 5.7 percent.

Other major gainers this session were SSI of brokerage Saigon Securities Inc., up 3.8 percent, FPT of IT services firm FPT, 3.6 percent, and PLX of gasoline distributor Petrolimex, up 3 percent.

According to various reports from securities firms, the sheer amount of cash from new investors in the market, many of whom are inexperienced and would follow the herd, means that stocks would see bigger movements compared to pre-Covid-19 periods.

The only other stocks in the red this session were VRE of mall operator Vincom Retail, down 0.5 percent, and SAB of major brewer Sabeco, with 0.4 percent.

Both the HNX-Index for stocks on the Hanoi Stock Exchange, home to mid- and smaller- caps, and UPCoM-Index for the Unlisted Public Companies Market, surged by 3.01 percent and 1.68 percent this session.

Foreign investors turned net sellers to the tune of VND260 billion on all three bourses, with net buying pressure mostly on HPG of Hoa Phat Group, and VRE of Vincom Retail.