VN-Index surges for second straight session

By Hung Le August 4, 2020 | 03:12 am PT

An investor looks at stock prices on a laptop at a brokerage in Ho Chi Minh City. Photo by VnExpress/Quynh Tran.

The VN-Index climbed 1.59 percent to 827.57 points Tuesday, with strong growth seen in seafood and insurance industry groups.

The index had immediately surged nine points within the first 30 minutes of trading, then plateaued slightly below that level before climbing another four points in the afternoon.

The Ho Chi Minh Stock Exchange (HoSE), on which the VN-Index is based, was again a sea of green with 326 tickers gaining and 68 losing. Total trading volume fell nearly 10 percent over the previous session, reaching VND4.2 trillion ($182.47 million), slightly below last month’s average daily trading.

According to analysts, the Vietnam - EU Free Trade Agreement (EVFTA), which came into effect from August 1, has contributed to positive market sentiment in the past two gaining sessions, spurring growth in seafood processing, textiles, and logistics stocks.

Major tickers in these sectors performed well on Tuesday, such as VHC of seafood exporter Vinh Hoan Corporation, up 3.64 percent, FMC of seafood processor Sao Ta Foods, up 3.97 percent, TCM of Thanh Cong Textiles, up 6.97 percent, and TNG of garments exporter TNG Investment, with 3.57 percent.

In logistics and transport, GMD of port operator Gemadept gained 3.23 percent, PDN of Dong Nai Port 6.97 percent, and VSC of Vietnam container Shipping JSC 3.88 percent.

Under the EVFTA, Vietnam will eliminate 99 percent of its import duties over 10 years and the E.U. will do the same over seven years. It is also expected to open up major opportunities for the export of key products such as textiles, footwear, agriculture, fisheries, according to a recent Ministry of Industry and Trade report.

The VN30-Index for the stock market’s 30 largest caps added 1.37 percent this session, with 28 tickers gaining, two keeping their opening prices, and none losing.

Leading gains was VCB of Vietcombank, one of Vietnam’s three biggest state-owned lenders by assets, with 3.9 percent, followed by ROS of real estate developer FLC Faros, up 3.7 percent, and KDH of real estate developer Khang Dien House, with 3.2 percent.

MSN of food conglomerate Masan Group, VRE of mall operator Vincom Retail and VNM of dairy giant Vinamilk, were some of the other major gainers, having risen 2.7 percent, 2.5 percent and 1.9 percent respectively.

BID of BIDV and CTG of VietinBank, the other two of Vietnam’s three biggest state-owned banks, added 1.9 percent and 1.4 percent respectively.

Oil and gas stocks also performed relatively well compared to the rest of the VN30 this session. PLX of petroleum distributor Petrolimex added 1.7 percent, GAS of energy giant PetroVietnam Gas 1.3 percent, and POW of electricity generator 1 percent.

VIC of private conglomerate Vingroup, the largest capped stock on the HoSE, rose 0.5 percent.

Meanwhile, the HNX-Index for stocks on the Hanoi Stock Exchange, home to mid and small caps, gained 1.87 percent; and the UPCoM-Index for stocks on the Unlisted Public Companies Market edged down 0.68 percent.

Foreign investors turned net sellers to the tune of VND132 billion ($5.73 million) on all three bourses, ending a streak of five consecutive net buying sessions, with selling pressure focused mainly on SAB of major brewer Sabeco, up 1.3 percent, and VHM of real estate developer Vinhomes, up 0.6 percent.