VN-Index rises after two major losing sessions

By Hung Le   July 28, 2020 | 03:24 am PT
VN-Index rises after two major losing sessions
An investor looks at stock prices on the screens at a brokerage in Ho Chi Minh City. Photo by VnExpress/Quynh Tran.
The VN-Index rose 3.59 percent to 813.36 points Tuesday, with foreign investors remaining net buyers for the third straight session.

The Ho Chi Minh Stock Exchange (HoSE), on which the benchmark index is based, saw 360 stocks rise and just 49 fall.

Although Vietnam confirmed 11 new intra-community Covid-19 infections Monday night, all of them in coastal Da Nang City, investors seem to have been calmed by the government’s quick response to implement social distancing and deploy more doctors in the city, analysts said.

Other than that, there was no clear positive news which boosted Vietnam’s stock market, they noted.

Total trading volume on HoSE went down to VND5.03 trillion ($217.07 million) Tuesday, following two sessions of abnormally high liquidity exceeding VND7 trillion ($302.1 million). Half of this trading volume involved stocks on the VN30, a basket of the market’s 30 biggest capped stocks.

The VN30-Index gained 3.59 percent, with 29 tickers rising and just one falling.

Leading gains was VHM of real estate developer Vinhomes and SSI of top brokerage Saigon Securities Inc. with 6.9 percent and 6.8 percent respectively, both hitting their ceiling prices, the highest they can go in a trading session.

Vietnam’s state-owned banks were some of the biggest gainers, too. Of the three biggest by assets, BID of BIDV surged 6.5 percent, CTG of VietinBank rose 4.8 percent, while VCB of Vietcombank added 1.9 percent. MBB of mid-sized Military Bank gained 6.2 percent.

Private banks posted more modest gains, with VPB of VPBank adding 4.8 percent, STB of Sacombank 3.9 percent, TCB of Techcombank 3.3 percent, HDB of HDBank 1.9 percent, and EIB of Eximbank 0.6 percent.

Stocks in the energy sector also saw strong gains, with GAS of energy giant PetroVietnam Gas rising 5.9 percent, POW of electricity generator 5.8 percent, and PLX of petroleum distributor Petrolimex 3.2 percent.

Some of the other best performers this session included VNM of dairy giant Vinamilk, up 6.3 percent, HPG of leading steelmaker Hoa Phat Group, up 5.4 percent, and FPT of IT services giant FPT, up 4.6 percent.

VJC of budget carrier Vietjet Air was the only stock in the red, down 1.4 percent, after the government suspended all flights to and from Da Nang from Tuesday onwards.

Meanwhile, the HNX-Index for stocks on the Hanoi Stock Exchange, home to mid and small caps, rose 4.99 percent; and the UPCoM-Index for stocks on the Unlisted Public Companies Market added 3.02 percent.

Foreign investors were net buyers for the third consecutive session on all three bourses to the tune of VND228 billion ($9.84 million), with buying pressure focused on VHM of Vinhomes and HPG of Hoa Phat Group.

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