Property drives VN Index upwards

Hanoi (VNA) - The VN Index on the HCM Stock Exchange advanced for a second day on March 6, driven by stocks in the property and construction sectors.

The benchmark index closed up 0.5 per cent at 716.29 points, extending gains to a second day with total growth of 1.2 percent.

The real estate and construction sectors sectors made gains after FTSE, a London-based index provider, on Friday announced it would add shares of Faros Construction Corp (ROS) and two other property stocks, including Hòa Bình Construction (HBC) and Dat Xanh Real Estate Service and Construction (DXG), into its FTSE Vietnam Index in the first quarterly review of 2017.

The news helped Faros Construction Corp and Dat Xanh Real Estate Service and Construction Corp share prices surge 6.9 percent and 6.4 percent, respectively.

Property firm FLC Group (FLC), the major shareholder of Faros Construction Corp, also benefited from the increase of Faros’ share price. FLC jumped 7 percent on March 6 and topped the most-active stock board with more than 17.6 million shares being exchanged.

The largest real estate company Vingroup (VIC) edged up 0.6 percent.

The southern bourse also received strong support from several large-cap stocks, such as dairy producer Vinamilk (VNM), the Bank for Investment and Development of Việt Nam (BID) and Vietinbank (CTG).

VNM added 0.8 percent, BID rose 1.2 percent and CTG was up 0.5 percent.

After the VN Index ended its nine-week rally, the impact of speculations over FTSE Vietnam ETF’s first quarterly review is driving the benchmark index in a positive direction with rapid increase of ROS, BIDV Securities Corp (BSC) said in a note.

However, the current market conditions remain volatile on unpredictable changes that could be made in the investment portfolios of the exchange-traded funds (ETFs) and expectations for an interest rate increase in March by the US central bank, BSC added.

Market trading liquidity on the southern bourse on March 6 rose strongly from March 3 with more than 172 million shares being traded, worth 3.58 trillion (159 million USD)

On the Hanoi Stock Exchange, the HNX Index inched down 0.1 percent to end at 86.55 points, reversing from a slight gain made on March 3.

More than 45.4 million shares were exchanged on the northern bourse, worth 446.7 billion VND. -VNA