VN-Index edges up at the last minute

Hanoi (VNS/VNA) - Shares rose slightly for a second day on the HCM Stock Exchange this week but the rally was recorded in the last trading minutes thanks to recovery of some large-cap stocks.

The benchmark VN-Index closed October 10 up 0.21 percent at 810.65 points. It inched up just 0.14 percent on October 9.

Major bank stocks continued to advance, backing up the market’s sentiment.

Vietcombank (VCB), the biggest listed lender by market value, increased 0.63 percent. VPBank (VPB) rose 1.5 percent, while Military Bank (MBB) picked up 0.7 percent.

However, Vietinbank (CTG) and Eximbank (EIB) fell 0.5 percent and 1.7 percent, respectively and Sacombank (STB) and BIDV (BID) closed flat.

According to analysts at Vietnam Investment Securities Co (IVS), the market seemed to wait for the leadership of the banking group.

When this group weakened, the market declined but when big banks like Vietcombank and Military Bank advanced, the market rebounded.

This momentum helped the VN-Index surpass the 810 point benchmark.

“However, the over-reliance on bank stocks which have already risen sharply to over the valuation area will restrain the VN-Index to advance further,” IVS analysts wrote in a daily report.

Moreover, money flows on October 10 focusing mainly on high-value large caps also affected the overall market movement.

In the VN30 basket (which tracks the top 30 largest shares by market value and liquidity), 14 gained and 10 lost. Besides banks, big gainers included VinGroup (VIC), Mobile World Group (MWG), steelmakers Hoa Phat Group (HPG) and Hoa Sen Group (HSG) and IT firm FPT Corp (FPT).

On the defensive side, dairy giant Vinamilk (VNM), Saigon Securities Inc (SSI), PV Gas (GAS), Kido Group (KDC), DHG Pharmaceutical (DHG) and Kinh Bac City Development Holdings (KBC) were among the losers.

“The market may again have to rely on bank stocks for another advance. The VN-Index will likely move around 810 points but the stocks rising on October 10 may be under profit-taking pressure,” IVS analysts forecast.

Liquidity decreased sharply with 183.2 million shares worth total 3.7 trillion VND (162.7 million USD) traded on the two exchanges, down 19 percent in volume and 16 percent in value compared to October 9's figures.

Foreign investors remained net sellers in the two markets on October 10 with net sell value of 83.4 billion VND, lifting the two-day net sell value to 528.4 billion VND.-VNA