Shares extended gains on the two local stock exchanges on Wednesday morning because of strong investor buying. (Photo: VNA)

Hanoi (VNA) – Shares extended gains on the two local stock exchanges on June 7 owing to strong investor buying on a positive market outlook.

The benchmark VN-Index on the HCM Stock Exchange added 0.29 percent to close at 753.46 points. The southern market index expanded 2 percent in the last three trades.

On the Hanoi Stock Exchange, the HNX-Index rose 1.80 percent to 97.47 points. The northern market index has climbed 4.5 percent since early this month.

Money continued to flow into the securities and banking sectors, averaging 1.77 percent and 1.09 percent, respectively, data on Vietstock.vn showed.

Shares of Vietinbank (CTG), Military Bank (MBB), Asia Commercial Bank (ACB), Saigon-Hanoi Bank (SHB) and Nam Viet Nam (NVB) kept rising, of which NVB hit the maximum growing limit of 10 percent capped on the Hanoi exchange.

However, Vietcombank (VCB) and Sacombank (STB) tumbled due to rising profit-taking pressure.

For the brokerage companies, big names such as Saigon Securities Inc (SSI), HCM Securities Corp (HCM), FPT Securities (FTS) and BIDV Securities Co (BSI) gained between 0.2 percent and 1 percent.

Foreign investors continued to pour money in steel shares, of which Hoa Phat Group (HPG) and Hoa Sen Group (HSG) again topped the most purchased shares by the foreign sector with net buy values of nearly 35 billion VND (1.5 million USD) and 26.6 billion VND, respectively.

HPG rose nearly 3 percent but HSG edged down 0.9 percent.

Foreign traders were net buyers for nearly 35 billion VND on the two exchanges on June 7.

According to analysts at BIDV Securities Co, the market rise slowing down may indicate a possible downward correction in the next session.

The VN-Index gained 4.6 percent in the past one month and has climbed 13.3 percent since early this year.

“However, the fact that the VN-Index was moving above the reference threshold for the whole session today showed investors’ strong confidence,” BIDV Securities’ analysts wrote in a note.

They reckoned the VN-Index would likely move around 750-755 in the coming sessions.

Many large-cap stocks lost value due to rising profit-taking pressure, including Vinamilk (VNM), Petrolimex (PXL), Vietjet (VJC) and FPT Corp (FPT).

Liquidity increased, with a total of 304.5 million shares worth around 5.8 trillion VND (254.8 million USD) being traded on the two markets, up 16.7 percent in volume and 20.8 percent in value compared to June 6's figures.-VNA