Banking stocks prosper

The Ho Chi Minh Stock Exchange’s (HoSE) VN-Index advanced 3.82 points, or 0.78 per cent, to 493.47 points, meanwhile Hanoi Stock Exchange’s (HNX) Index added 0.99 points, or 0.83 per cent, to 120.6 points. Trading volumes fell back to 95.67 million shares, down 30 per cent against the yesterday’s record high, worth VND2.188 trillion ($112.2 million).

Banking stocks continued today’s strong gain with six out of the seven codes hitting ceilings. Meanwhile, Habubank HBB outperformed the market again in terms of liquidity with 12.6 million shares traded.

Analysts said the bank stocks’ increase stemmed from the further affect of government’s decision extending the deadline for banks to raise capital, even though the listed ones all had met the requirement.

“Although investors knew bank stocks were cheap, they were hesitant to buy due to worries about government’s policy. As this sentiment is eased, they cash in with the hope for a new strong wave in banking stocks,” said economist Le Dat Chi of the Ho Chi Minh City Economics University.

There is also a rise in demand for shares of some banks like An Binh Bank, VPBank, Maritime Bank on  the unofficial market.

In a new move, investors today cashed in blue-chip stocks in accordance with the market analysts’ expectation early this week. VIC, BHV, EIB and DPM alone helped the VN-Index to hit 3.83 points – equivalent to the whole benchmark’s increase in this session.

“The growing momentum had begun to extend to large-cap stocks,” said a note for Vietcombank Securities clients.

Overall, 146 stocks fell with 37 hit floors, in which VHG, GTT, PET, SBT ended lowest.

Foreign investors were net buyers with 326,000 shares worth VND47.83 billion ($2.45 million) [bought 7.14 million shares worth VND270.75 billion ($13.88 million) and sold 7.1 million shares worth 222.92 billion ($11.43 million)] in Ho Chi Minh Stock Exchange. They cashed in heavily in DPM, VCB, QCG, REE, PVD, SJS while selling most ITA, CII, VFC, VIC, BCI, ANV.