An investor follows transactions at Sai Gon Securities Incorporation in Hanoi. (Source: VNA)

Hanoi (VNA) - Vietnamese shares rose on both local bourses on December 8, led by the financial sector after it was announced that a large amount of bad loans were sold to the Vietnam Asset Management Corporation during the third quarter.

The benchmark VN Index on the HCM Stock Exchange gained 1.9 percent to close at 574.15 points and the HNX Index on the Hanoi Stock Exchange was up 0.5 percent to end at 80.14 points.

Financial stocks rose after the Vietnam Asset Management Corporation (VAMC) announced on its website that it had bought 43.3 trillion VND (1.9 billion USD) of non-performing loans from local financial institutions during the third quarter.

Vietnam's biggest bank by market capitalisation, Vietcombank (VCB), surged 5.6 percent while BIDV (BID) gained 2.4 percent and Vietinbank (CTG) jumped 2.8 percent after investors received the information.

Stocks were also boosted by market rumors that the Government has drafted an outline of rules and regulations regarding the sale of state-owned stakes in some of Vietnam's largest companies to foreign investors.

"Investment flocked into those companies on expectations that the Ministry has developed a new document that allows foreign investors to raise their capital in those companies" said Nguyen Xuan Binh, Bao Viet Securities Corporation's Deputy Head of Market Analysis.

The stocks that benefited from this information included Bao Viet Holdings (BVH), which surged 6.3 percent, Vinamilk (VNM) which jumped 4.2 percent, and FPT Corporation (FPT) and Thanh Cong Textile Garment Investment Trading JSC (TCM) which gained 6.8 percent each.

In addition, investors also expected that the market on the previous day reached its bottom after having declined for over a month, Binh said. On December 7, the VN Index reached 563.62 points, a decrease of 8.4 percent since November 5 and the HNX Index declined by 2.6 percent to 79.72 points over the same period.

That expectation helped increase the market trading compared to the previous day. Both local bourses traded more than 173 million shares worth 2.5 trillion VND (112.3 million USD), an increase of 37 percent from the previous day's trading value.-VNA