VN-Index hits new 10-year peak (Photo VNA)

Hanoi (VNA) -
The benchmark VN-Index hit a new 10-year peak on October 27 after big money flowed into large-cap stocks on rising investor confidence in the market outlook.

On the HCM Stock Exchange, the VN-Index increased 1.24 percent to close at 840.37 points, the highest level since February 12, 2008.

The market was no longer a ‘single-stock game’ involving FLC Faros Construction Corp (ROS) as happened regularly throughout the week, but most heavyweight stocks jumped yesterday and lifted the VN-Index.

Twenty of the top 30 largest shares in terms of market value and liquidity on the southern bourse gained value and only seven declined.

The market driver ROS extended gains with further growth of 6.9 percent, slightly lower than the cap of 7 percent allowed for a single trading day. Market capitalisation of ROS exceeded 4 billion USD on October 27 after its one month rally.

ROS shares have risen consecutively since September 27, expanding 85.4 percent in the past month to trade at 196,000 VND (8.63 USD) a share.

Besides ROS, many large caps rallied substantially, including Vietcombank (VCB), up 3.5 percent; real estate giant VinGroup (VIC), up 3.1 percent; Vietjet Air (VJC), up 3 percent; Military Bank (MBB), up 2.2 percent; BIDV (BID), up 2.4 percent; Masan Group (MSN), up 2.3 percent; and PV Gas (GAS), up 1 percent.

“Few investors thought the VN-Index could break the resistance level of 840 points,” stock analysts at BIDV Securities Co wrote in the October 27 report.

However, according to these analysts, yesterday’s rally was sudden and not really reliable when the trading volume and value was low and the cash flow was scattered and focused on some large caps.

“Like the previous big rally, it is likely that the market will face correction when the price of stocks was pushed up quite high,” they said.

A few companies continued to trend downwards yesterday, such as insurer Bao Viet Holdings (BVH), brewer Sabeco (SAB), steelmaker Hoa Sen Group (HSG), Hau Giang Pharmaceutical (DHG) and Binh Minh Plastics (BMP).

Overall market condition was positive with 154 stocks rising, 125 falling and 65 closing flat.

On the Hanoi Stock Exchange, the HNX-Index edged up just 0.13 percent to end at 106.45 points on the lack of blue chips’ support.

Liquidity decreased slightly from the previous session with a total of 181.4 million shares worth a combined 3.85 trillion VND (169.7 million USD) traded on the two markets, down over 3 percent in both trading volume and value compared to the October 26 levels

Foreign trade was also positive yesterday with total net buy value of 107.5 billion VND on the two exchanges.-VNA