Financial stocks help VN shares bounce back

Investors follow transactions at VnDirect in Ha Noi. Securities stocks helped boost the markets as their business benefited from recently improved market liquidity. - VNS Photo Viet Thanh

The benchmark VN Index on the HCM Stock Exchange and the HNX Index on the Ha Noi Stock Exchange rose 0.5 per cent each to finish at 577.07 points and 80 points, respectively.

The banking sector was lifted by Vietcombank (VCB) and the Bank for Investment and Development of Viet Nam (BID). These stocks gained 2.9 per cent and 1.1 per cent, respectively.

The insurance sector also made good gains, led by Bao Viet Holdings (BVH), BIDV Insurance Corporation (BIC) and Bao Minh Insurance Corporation (BMI). BVH and BIC added 0.9 per cent each while BMI rose 1.1 per cent.

Securities stocks helped boost the markets as their business benefited from recently improved market liquidity, which has remained higher than last year's average daily trading value since the markets reopened after the Tet holidays.

Both local markets yesterday traded more than 201 million shares worth VND2.75 trillion (US$122.5 million), higher than last year's average daily trading value of $111 million.

Among brokerage stocks, HCM City Securities Corporation (HCM) rose 1 per cent, AgriBank Securities JSC (AGR) jumped 3.2 per cent, and Bao Viet Securities Corporation (BVS) was up 0.8 per cent.

Meanwhile, foreign investor confidence was low ahead of the US central bank's meeting on expectations that it will maintain the current interest rates. If the interest rates are raised, the Vietnamese dong will become weaker against the US dollar.

Yesterday, Viet Nam's central bank increased its daily reference mid-point rate by VND6 to VND21,878 a US dollar. The mid-point rate has gained VND29 in the last two days.

The stock markets also received support from other large-cap stocks such as PetroVietnam Gas Corporation (GAS), dairy corporation Vinamilk (VNM), Hoang Anh Gia Lai JSC (HAG) and Hoang Anh Gia Lai Agricultural JSC (HNG). These stocks advanced 0.9 per cent, 0.7 per cent, 2.4 per cent and 4.3 per cent, respectively.

On the negative side, natural rubber producers such as Dong Phu Rubber JSC (DPR), Tay Ninh Rubber JSC (TRC) and Phuoc Hoa Rubber JSC (PHR) suffered extended losses after having made good gains last week on improved rubber prices.