Investors at MB Securities Co in Hanoi (Photo: VNA)

Hanoi (VNA) – Shares rebounded on October 24 on the two national stock exchanges after a flop the previous day, propped up by the strong growth of several major large caps.

The benchmark VN-Index on the HCM Stock Exchange rallied 0.63 percent to close on October 24 at 825.24 points, off-setting October 23’s loss of 0.25 percent.

Large-cap stocks recovered and led the upturn as over half of the top 30 largest shares by market value and liquidity gained value and 10 declined.

FLC Faros Construction’s stock (ROS) was the biggest gainer, rising by the daily maximum limit of 7 percent at 161,300 VND (7.11 USD) per share. This is the 19th consecutive session of gains for the stock, with cumulative growth of 52.6 percent since the rally began.

Meanwhile, the biggest listed energy company PV Gas (GAS) picked up 2.4 percent to settle at 69,700 VND a share. PV Gas reported nearly 15.1 trillion VND (665.2 million USD) in net revenue in the third quarter, up 9.4 percent year-on-year. Its strong Q3 number came from higher oil price and the elimination of turnaround from Nam Con Son Pipeline in 2017, which helped double its net profit to 1.9 trillion VND.

Besides ROS and GAS, many heavyweight blue chips such as Vinamilk (VNM), Mobile World Group (MWG), Binh Minh Plastic (BMP), Vietcombank (VCB), Military Bank (MBB) and brewer Sabeco (SAB) also rose.

According to Viet Dragon Securities Company (VDS), the market trend is still mainly dependent on large-cap movements, as investors have become more cautious and conservative with speculative stocks.

Investors may buy on rumors of earnings results of listed companies. However, the picture of profit is not clear enough to encourage accumulation of stocks at this time and there is a high probability that the VN-Index will decline in November, VDS analysts wrote in the October strategy report.

On the Hanoi Stock Exchange, the HNX-Index recovered part of its Monday losses, closing up 0.42 percent at 106.69 points.

A total of over 223 million shares worth a combined 6.7 trillion VND (296 million USD) were traded in the two markets on October 24. These figures represented a decrease of 15.5 percent in volume but an increase of 28.8 percent in value compared to October 23’s levels.

Strong growth in trading value came from put-through (negotiated) transactions worth a total of 3.5 trillion VND. Transactions on shares of dairy giant Vinamilk accounted for 80 percent of the total.

Over 18.1 million Vinamilk shares worth nearly 2.8 trillion VND changed hands by foreign traders on October 24.

Earlier, F&N Dairy Investment registered to buy nearly 21.77 million shares of Vinamilk from October 2 to 31 through order matching or put-through trade on the stock exchange. F&N Dairy Investment currently holds 16.04 percent of Vinamilk’s charter capital. If the transaction is carried out successfully, its ownership in the Vietnamese dairy firm will increase to 17.54 percent.

Vinamilk’s shares have expanded 18.6 percent this year and are currently traded at around 149,000 VND a share.-VNA