VN stocks rally on global developments

Investors take part in a trading session at VNDirect Securities JSC in Ha Noi. - VNA/VNS Photo Pham Hau

The benchmark VN-Index on the HCM Stock Exchange gained nearly 1 per cent to close at 979.21 points. It has risen total 1.85 per cent since last Thursday.

The HNX Index on the Ha Noi Stock Exchange advanced 1.81 per cent to end at 110.02 points. The northern market index has totalled a three-day increase of 1.94 per cent.

Nearly VND5 trillion (US$221.8 million), or more than 237 million shares, was traded on the two bourses, up 11.8 per cent in volume and 13 per cent in value compared to Monday.

Banks, securities firms, energy companies and rubber producers were the major driving forces of the stock market on Tuesday.

The four sector indices gained between 2.1 per cent and 5.4 per cent, data on vietstock.vn showed.

Among gaining financial-banking stocks were Bank for Investment and Development of Vietnam (BID), Asia Commercial Bank (ACB), Vietinbank (CTG), Saigon Securities Inc (SSI) and VNDirect Securities (VND).

Energy stocks such as PetroVietnam Drilling and Well Services (PVD), PetroVietnam Technical Services (PVS) and PetroVietnam Coating Corp (PVB) extended growth on the increase of oil prices.

According to securities companies, investor confidence improved after global markets shook off worries on hopes for US-China trade talks this week that could help resolve the tensions between the two largest economies.

“The VN-Index rose as the sentiment of investors improved, while regional markets saw positive signs in trade tension between the US and China,” BIDV Securities JSC (BSC) said in its daily report.

Such efforts helped the Chinese stock market and the second largest economy’s RMB exchange rate continue to recover, BSC said.

Meanwhile, the chairman of the HCM Stock Exchange board of directors Tran Van Dung said at the Vietnam Economic Forum on Tuesday that the Vietnamese equity market would reach ‘emerging market’ status in two years.

According to Bao Viet Securities JSC, this was “good news to build investors’ confidence on the prospects of the market.”

Foreign investors net-purchased VND144.3 billion worth of Vietnamese stocks compared to a net sell value of VND58 billion recorded on Monday.

Regarding the market’s short-term future, BVSC said that the VN-Index could break through the range of 980-983 points on Wednesday with bank stocks taking the lead.

“If the VN-Index surpasses this threshold, it may rise to the 990-1,000 strong resistance zone in August,” BVSC forecast.