Shares rose on the two local exchanges on Monday, driven by high investor confidence on expectations of positive earnings reports from listed companies.

The benchmark VN Index on the HCM Stock Exchange rose 0.6 per cent to close at 715.07 points, ending positive compared to the decline of 0.6 per cent on Friday.

More than 175.28 million shares were traded on the southern bourse, worth VNĐ4.02 trillion (US$179.95 million).

The VN Index performed well on Monday after it was put under pressure from exchange-traded funds (ETFs) increasing their trading activities in their first-quarter portfolio reviews, BIDV Securities Corp (BSC) said in a note.

“Investor confidence has improved,” BSC said, adding that positive investor sentiment helped lift the stock market in spite of long-term negative effects from the Fed’s rate hike last week and the decline of Faros Construction Corp’s share price.

BSC also said in its latest weekly report that investors would turn their attention to stocks with good business prospects and positive information.

Finance-banking stocks were the ones that received high interest from investors as they were expected to release positive earnings reports for the first-quarter performances.

Eight of the nine listed banks advanced yesterday with Asia Commercial Bank (ACB), Eximbank (EIB), MBBank (MBB), Sacombank (STB) and Vietcombank (VCB) among the biggest gainers.

The insurance sector was driven up by Bảo Việt Holdings (BVH), while brokerage firms that saw share prices increase were HCM City Securities Corp (HCM), MB Securities Corp (MBS), Sài Gòn Securities Inc (SSI) and VNDirect Securities Corp (VND).

Other blue chips also supported the positive direction of the stock market, including Vietjet Aviation JSC (VJC), southern brewer Sabeco (SAB), consumer goods producer Masan Group (MSN) and steel makers Hòa Phát Group (HPG) and Hoa Sen Group (HSG).

On the opposite side, dairy producer Vinamilk (VNM), Faros Construction Corp (ROS) and property developer Vingroup (VIC) declined and prevented the southern market from rising higher.

“The VN Index may continue to move in the range of 710 and 720 points as there is not much positive market news that could lift the index further,” BSC said.

Investors must keep a close watch on the movement of some large-cap stocks such as ROS as that stock has fallen for three consecutive days and its negative trend would have negative impact on the stock market, BSC added.

On the Hà Nội Stock Exchange, the HNX Index added 0.7 per cent to end at 89.03 points. The northern market index has rallied a total 2.3 per cent in the last five sessions.

More than 50.6 million shares were exchanged in the northern market, worth VNĐ656.8 billion. — VNS

Source:
courtesy of VIET NAM NEWS

by Viet Nam News

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