Shares rebound on banking stocks

Vietnamese shares saw a rebound on Friday thanks to strong cash flow pouring into banking and securities sectors, but investors’ hesitation still makes the market momentum unsustainable.- Photo vietnamplus.vn

The benchmark VN-Index on the HCM Stock Exchange (HOSE) gained 0.52 per cent to close at 1,050.26 points. It tumbled 3.32 per cent on Thursday.

Meanwhile, the HNX Index on the Ha Noi Stock Exchange (HNX) recouped 2.1 per cent to end at 122.64 points, recovering from the previous fall of 4.9 per cent.

More than 244 million shares, worth VND8.6 trillion (US$297 million), were traded on the two local exchanges,

The market breadth was positive, with 293 gaining stocks against 177 declining ones while 272 other stocks ended flat.

Large-cap stocks performed well, pulling the large-cap VN30 Index up 0.88 per cent to 1,027.97 points. Some pillar stocks, such as property developer Vingroup, PetroVietnam Gas and Bao Viet Holdings rose towards the last minutes, partly calming investors’ sentiment.

According to Bao Viet Securities (BVSC), the market continued to witness strong volatility after two previous bearish sessions.

Shares made some rebound sessions during this week but investors were quite cautious and concerned about the possibility of market bull traps, in which the market shows a false signal of increasing but continues to decline.

Banking and securities stocks were two drivers of the market, with some prominent performers such as Vietcombank (3 per cent), Vietinbank (3.7 per cent) and Military Bank (4.9 per cent), in addition to Saigon Securities Inc (3.5 per cent), Viet Capital Securities (5 per cent) and VNDirect Securities hitting the daily limit rice of 6.9 per cent.

BVSC said in its daily report that investors are pessimistic about heavy selling pressure in the low price range. However, the Friday session opened up a chance of a recovery for the VN-Index after the holiday period – Liberation Day (April 30) and International Labour Day (May 1).

According to BIDV Securities JSC (BSC), although there was this recovery session, the market is still very risky to determine the bottom. Investors should still lower their margins to safe levels.

On the Unlisted Public Company Market, the UPCOM Index lost 0.15 per cent to end at 57.06 points.