Shares rose stronger in July 31 afternoon trading as bank stocks accelerated their growth on the back of positive first-half business earnings. (Photo: bizlive.vn)Hanoi (VNA) - Shares rose stronger in July 31 afternoon trading as bankstocks accelerated their growth on the back of positive first-half businessearnings.
On the HCM StockExchange, the VN-Index surpassed the latest nine-year peak recorded on July 6,hitting 783.48 points, a rally of 0.82 percent over July 28’s close.
The benchmark indexexpanded 2 percent last week.
On the Hanoi StockExchange, the HNX-Index increased 0.63 percent to end at 101.18. The northernmarket index gained 2.6 percent in the previous week.
“The risk of ashort-term sharp decline was significantly diminished. Large-cap stocks,especially bank stocks, are supporting the indices’ uptrend,” said Tran Hai Yen,a stock analyst at Bao Viet Securities Co (BVSC).
Banks were the biggestgainers yesterday, with an average growth of 2.33 percent, data on vietstock.vn showed.
Seven of nine listedbanks gained value, with two of the three largest banks by market value, BIDV(BID) and Vietinbank (CTG), increasing 5.7 percent and 4.6 percent,respectively.
The largest lender,Vietcombank (VCB), edged up 0.7 percent.
According to BVSC’sreport, Vietcombank is the most profitable bank with pre-provision operatingprofit of 5.05 trillion VND (224.7 million USD) by the end of June, up 20.5 percentyear-on-year and fulfilling 54 percent of its yearly target.
BIDV also recordedpositive earnings with pre-tax profit for the first six months reaching 4.05trillion VND, a year-on-year increase of 24.7 percent and completing 54 percentof the goal it set for the year.
Military Bank (MBB)posted over 2.5 trillion VND worth of pre-tax profit in the first half of thisyear, rising 36 percent over the same period last year and achieving 55 percentof its yearly target. MBB’s shares advanced 1.3 percent on July 31.
“Solid earnings resultsas well as benefits of the bad debt resolution law and quantitative easingpolicy are drawing cash flows into bank stocks," Yen said.
Other blue chips weremixed. Insurer Bao Viet Holdings (BVH), PV Gas (GAS), VinGroup (VIC), Sabeco(SAB), Novaland Investment (NVL) and FLC Faros Construction (ROS) advanced.However, dairy giant Vinamilk (VNM), FPT Corp (FPT), Mobile World Group (MWG)and Kido Group (KDC) tumbled.
Liquidity increased witha total 345 million shares worth 5.4 trillion VND (237.5 million USD) beingtraded in the two markets, up 34.3 percent in volume and 25.6 percent in valuecompared with last week’s daily average volume and value.-VNA
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