Shares rebound as bargains sought

An investor watches stock movements. (Photo tinnhanhchungkhoan.vn)

Hanoi (VNA) – Shares rebounded on March 29 on the two stock exchanges as investors poured money into insurance and food and beverage stocks on positive earnings prospects.

On the HCM Stock Exchange, the VN-Index inched up 0.2 per cent to close at 720.5 points after a 0.6 percent decrease on March 28.

On the Hanoi Stock Exchange, the HNX-Index went up 0.1 percent to end at 90.7 points. The northern market index had fallen 0.9 percent a day earlier.

Liquidity remained high with a total of 236 million shares worth 4.4 trillion VND (193 million USD) traded in the two markets.

Insurance stocks continued to lead the market rebound yesterday with an average growth of 1.94 percent, followed by the food and beverage group, rising 0.9 percent on average.

PVI Holdings was the biggest gainer with the daily maximum rise of 10 percent, extending its rally to four consecutive sessions. Investors speculated on information that the insurer would pay a 20-percent dividend and on plans to increase foreign ownership limit to 100 percent.

In a positive spillover effect, other insurers like Bảo Minh Insurance (BMI), Petrolimex Insurance (PGI) and BIDV Insurance (BIC) climbed strongly by between 2.3 per cent and 6.8 percent. The biggest listed insurance company, Bảo Việt Holdings (BVH), gained a modest 0.5 percent.

Food and beverage shares remained positive with major firms including Vinamilk (VNM), Masan Group (MSN), Kido Group (KDC) and brewery Sabeco (SAB) all posting increased share values.

“After a loss in the previous session, the rebound today was a positive sign showing a high buying demand in low price ranges,” Tran Duc Anh, a stock analyst at Bao Viet Securities Co wrote in a market report on March 29.

He reckoned the market would extend its rally in the next sessions within a narrow range as the VN-Index approached its old peak.

The VN-Index reached a ten-year high of 723.52 points on March 27. The benchmark gauge has gained over 8 percent this year.

On the other side of fence, banks and agricultural stocks continued to slide.

Hoang Anh Gia Lai Co (HAG) and its agricultural arm Hoang Anh Gia Lai Agricultural Investment JSC (HNG) slumped 5 percent and 7 percent, respectively.|

Big banks like Vietcombank (VCB), Vietinbank (CTG), Military Bank (MBB) and Asia Commercial Bank (ACB) dropped below 1 per cent.-VNA