Thursday, May 25, 2017 - 15:41:19

Shares rise on investor optimism

VNA Print

Illustrative photo (Photo: VNA)

Hanoi (VNA) - Shares rose for a second day in the two local markets on April 27 on investor optimism that the market will return to a positive trend soon.

The benchmark VN Index on the HCM Stock Exchange advanced 0.91 percent to end at 716.53 points. Vietnam’s key index has gained 1.3 percent in the last two days.

The smaller HNX Index on the Hanoi Stock Exchange added 0.86 percent to finish at 89.32 points, a two-day increase of 1.7 percent.

More than 274 million shares were traded on both local bourses, worth nearly 4.68 trillion VND (207.8 million USD).

Market trading liquidity increased from April 26 on both local bourses with an increase of 41 percent in volume and 16.3 percent in value.

Gains were seen in 17 of the 20 industries in the stock market with shares of energy producers, property developers, food and beverage companies, and construction firms leading the way.

Foreign investors remained net buyers with a total net buy value of 124.8 billion VND, focusing on PetroVietnam Technical Services (PVS), information technology group FPT Corp (FPT), PetroVietnam Gas (GAS) and dairy producer Vinamilk (VNM).

PVS surged 5.4 percent, FPT gained 1.1 percent, GAS added 2.4 percent and VNM rose 1.8 percent.

Gains by PVS and GAS were the major factors that pushed the energy industry forwards, followed by PetroVietnam Coating (PVB), which jumped 4 percent.

Other stocks that had strong gains included sugar producers Thanh Thanh Cong Tay Ninh (SBT) and Bien Hoa Sugar (BHS), which soared 5.6 percent and 3.3 percent.

The two largest sugar producers in the country have announced they will discuss a merger between the two firms at their coming annual shareholder meetings. If the deal is sealed, it will create a sugar company with total chartered capital of 5 trillion VND.

Higher market trading liquidity in the last two sessions proved investors were optimistic that the stock market would continue to grow in the short term, Bao Viet Securities (BVSC) said in its report.

The next test for the VN Index would be the level of 720 points, BVSC said, adding that the benchmark index would face a big challenge to surpass this level.-VNA

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