Stock markets rebound with high investor confidence

Hanoi (VNA) – Vietnamese shares on April 26 rebounded on both local markets from the previous day’s falls as high investor confidence boosted large-cap stocks in the insurance and property sectors.

The benchmark VN Index on the HCM Stock Exchange rose 1.2 percent to close at 598.48 points and the HNX Index on the Hanoi Stock Exchange managed to inch up 0.1 percent to finish at 81.01 points.

“Investor confidence in blue chips was bolstered on expectations that the US central bank will not raise its interest rates at its meeting,” Bao Viet Securities Corp (BVSC) wrote in its report.

BVSC said that such high investor confidence boosted blue chips such as insurer Bao Viet Holdings (BVH), property firm Vingroup JSC (VIC), Vietcombank (VCB) and PetroVietnam Gas Corp (GAS).

Those stocks increased as foreign purchases occupied a large amount of their total trading volumes on April 26. BVH surged 6.3 percent, VIC added 2.9 percent, VCB rose 2.8 percent and GAS was up 2.5 percent.

FLC Group (FLC) surged 6.3 percent to lead the sector up after the company was approved to sell more than 179.6 million shares to current shareholders in order to increase its capital by nearly 1.8 trillion VND (80 million USD) to more than 7 trillion VND.

Two large companies in the agriculture sector, Hoang Anh Gia Lai JSC (HAG) and HAGL Agricultural JSC (HNG), jumped 6.8 percent and 6.9 percent to extend their gains of 18 percent and 15 percent for a fourth and third day, respectively.

Other smaller companies also helped lift the markets after they announced higher profits in the first quarter of 2016 compared with the same period last year, as well as positive business plans for this year.

An Phat Plastic and Green Environment JSC (AAA) increased 1.1 percent after the company said it earned a net profit of 25.2 billion VND in the first three months of 2016, a big improvement compared with a loss of 11.2 billion VND in last year’s first quarter.

Kim Long Securities Corp (KLS) jumped 3.2 percent after the company announced its plans to pay each shareholder 10,000 VND per share in August after the company shut down its business.

On the opposite side, Vietinbank (CTG) lost 1.2 percent after the bank said it would not pay dividends for last year’s performance, and phone retailer Digiworld Corp (DGW) dropped 1.5 percent after it reported a first-quarter net profit of 811 billion VND, down 13 percent from last year’s first quarter.

The local markets exchanged more than 226.4 million shares worth 3.87 trillion VND, a slight increase from the previous day.-VNA