Local stocks rise on bargain hunting hinh anh 1Vietnamese shares rebounded in both local markets on ​June 28, boosted by investors’ bottom-picking on expectations the market will soon return to an upward trend (Photo: VNA)

Hanoi (VNA) – Vietnamese shares rebounded in both local markets on June 28, boosted by investors’ bottom-picking on expectations the market will soon return to an upward trend.

The benchmark VN Index on the HCM Stock Exchange inched up 0.20 percent to close at 769.04 points.

The HNX Index on the Hanoi Stock Exchange gained 0.34 percent to end at 98.35 points.

The VN Index and the HNX Index on June 27 lost 0.7 percent each.

More than 261.4 million shares were exchanged on both local bourses, worth VND4.35 trillion (193.4 million USD).

June 28’s trading figures were lower than the previous day’s with a decline of 6.1 percent in volume and 7 percent in value.

Large-cap stocks performed well with 17 of the 30 largest companies by market capitalisation ended higher.

Increasing large-cap stocks included PetroVietnam Drilling and Well Services (PVD), lenders BIDV (BID) and Vietinbank (CTG), and Hoang Anh Gia Lai Group (HAG).

Those large-cap stocks rose between 0.1 percent and 2.6 percent with PVD recording the highest growth.

PVD on June 27 lost 2.1 percent, CTG dropped 1.2 percent, BID lost 1.5 percent and HAG slumped 3.6 percent.

Brokerage firms attributed the market’s recovery on Wednesday to strong bargain hunting, with investors snapping up stocks that had declined previously.

Saigon-Hanoi Securities (SHS) said in a note that the VN Index moved negatively in the first half of trading on June 28 as investors continued to offload their portfolios.

The market began to recover from the end of morning session and finished in positive territory as investors pecked up stocks from their intra-day bottom, SHS said.

However, June 28’s increase did not signal the stock market had returned to an upward trend and it needed to be tested in the next few sessions, the Hanoi-based brokerage firm added.

The VN Index is likely to continue moving narrowly on June 29 in the range of between 765 and 773 points, and needs to make a strong break from 773 points to fully return to an upward trend, SHS said.

Investor sentiment is still positive on thoughts that the market is in good conditions, therefore, strong selling that could pull the market down again is unlikely, Vietnam Investment Securities (IVS) said. - VNA