Bank, energy stocks lead bourses on upward trend

Shares extended rises to a second day on the two exchanges, again propped up by bank and energy stocks, but low liquidity continued to worry investors.

On the Hochiminh Stock Exchange, the VN-Index added another 0.99 percent to close the September 9 session at 572.34 points. It gained more than 2 percent.

On the Hanoi Stock Exchange, the HNX-Index also increased 1.17 percent to end the session at 78.16 points.

Overall market conditions were positive, with 35 percent of the 675 stocks advancing and 22 percent declining while others remained steady.

Banks continued to provide the market momentum, as eight of a total of nine listed banks posted gains and one closed unchanged.

Vietcombank (VCB), the biggest lender by market capitalisation of more than 122 trillion VND (5.4 billion USD), was the biggest gainer with a rise of 3.2 percent. Sacombank (STB) followed closely with gains of 3.1 percent.

Others advanced between 0.5 and 2 percent.

Global oil prices recovered, supporting growth of domestic oil and gas shares.

PetroVietnam Low Pressure Gas Distribution (PGD) hit the ceiling limit of 7 percent.

Other large-cap stocks include PV Gas (GAS), the second biggest stock nationwide; PetroVietnam Drilling and Wells Service (PVD); Petroleum Equipment Assembly & Metal Structure (PXS); and PetroVietnam Technical Services (PVS). They all climbed 1.5 to 4 percent each.

Both US crude and Brent crude extended gains. US crude stood at 46.2 USD a barrel while Brent touched nearly 50 USD a barrel.

According to analysts at the Sai Gon-Hanoi Securities Co, the market is still exposed to risks from the decline, since low liquidity has remained a big concern.

Nearly 90 million shares worth 1.53 trillion VND (68 million USD) were traded on the Hochiminh Stock Exchange, down 12 percent in both volume and value, and much lower than the August average of 116 million shares and 2.1 trillion VND (93.3 million USD).

The figure was even lower on Hanoi's market. The trading volume ended at just over 35 million shares worth 416 billion VND (18.5 million USD).

"This is sending an uncertain signal about the possibility of a strong rebound after a brief adjustment period since last week," analysts at the Sai Gon-Hanoi Securities Co wrote in a note.

Phat Dat Real Estate Development (PDR) and FLC Group (FLC) claimed the most active position nationwide with more than 4 million shares traded on each code.

Foreign investors returned as net buyers in the two markets on September 9, but their net sell value was a modest 79 billion VND (3.5 million USD).-VNA