Increased buying power in the afternoon of May 21 kept shares buoyant at the end of the session.
The markets extended gains for the second day after seeing the biggest daily growth in many months on May 20.
On the Hochiminh Stock Exchange, the VN-Index added another 0.45 percent to close yesterday's session at 552.56 points and the VN30, which tracks the top 30 shares by market value and liquidity, added 1.1 percent to end at 578.64 points.
News of a 6 cent-hike in fuel prices on late May 20 had a negative impact on the morning session, but strong investment in the afternoon revived investor optimism.
Overall, the market condition was positive with 130 stocks rising, 81 falling and 92 going flat.
Oil and gas companies performed well with most shares - PetroVietnam Drilling and Wells Service (PVD), Petroleum Equipment Assembly & Metal Structure (PXS), PetroVietnam Technical Services (PVS), PetroVietnam Drilling Mud (PVC) and PetroViet Nam Coating (PVB) - expanding between 1.6-4.8 percent.
Liquidity continued to grow with market volume climbing 20 percent over May 20, totaling more than 112 million shares worth 1.99 trillion VND (91.7 million USD), up 10 percent over the value.
FLC Group JSC (FLC) continued to attract investors, leading trades in the southern market with almost 22 million shares. Its price soared 4 percent to settle at 10,400 VND a share.
On the Hanoi Stock Exchange, the HNX-Index grew but slower than the southern bourse with only 0.46 percent gains to finish the session at 79.71 points.
Market volume and value were also less than stellar, decreasing 20 percent over the previous day to total 50 million shares worth 547 billion VND (25.2 million USD).
KLF Joint Venture Global Investment Co (KLF) remained the most active stock with 7.6 million shares traded at an unchanged price of 7,200 VND a share.
According to analysts at Bao Viet Securities Co, in addition to the positive news of the rebound, investors were encouraged by expectations that Decree 58 will go into effect soon, which would raise foreign holding limits.
"After an exciting rally, the market will likely face a ‘slump' in the next sessions," said a Bao Viet Securities analyst.
Foreign investors continued to buy local shares but at a slower pace. They picked up shares worth a combined 72.25 billion VND (3.3 million USD) in the two markets-VNA
