Investors track market fluctuations on the Maybank Kim Eng trading floor in HCM City (Photo: VNA)
Hanoi (VNA) – Shares advanced for a second day on the two national stock exchanges onJune 20 as investors increased their bets on bank stocks, given the positiveoutlook seen for the industry.
The benchmark VN-Index inched up 0.15 percent to close at 767.99 points on theHCM Stock Exchange. The southern market index rose nearly 1 percent in twodays.
On the Hanoi Stock Exchange, the HNX-Index edged up 0.39 percent to end at99.80. The northern market index expanded 1.5 percent in the two previoussessions.
Bank stocks continued to attract money, with eight of nine listed banks gainingvalue. Only Vietcombank (VCB) slipped 0.5 percent, other banks like Eximbank(EIB), Sacombank (STB), Military Bank (MBB) and BIDV (BID) posted gains ofbetween 2.8 percent and 6.5 percent.
Speculation on bank shares was generated by reports that the National Assemblyis likely to approve the bad debt settlement resolution this week. Theresolution is expected to ease bottlenecks in bank debt restructuring and boostoverall performance of the banking sector.
Apart from banks, pharmaceutical shares also saw positive trading. Big drugcompanies like DHG Pharmaceutical (DHG), Traphaco (TRA), PharmedicPharmaceutical Medicinal (PMC), Ha Tay Pharmaceutical (DHT) and Domesco MedicalImport Export (DMC) rose by between 1-7.5 per cent.
The overall market trend was positive with 253 stocks picking up, 212 fallingand 234 closing unchanged.
Investment was mostly spurred by the possibility that MSCI will publish theFrontier Market Index and Emerging Market Index on June 21.
If Vietnam is included in the Emerging Market waiting list or increases itsrank on the Frontier Market Index, exchange-traded funds (ETFs) and otherinternational financial institutions may increase Vietnamese stock in theirportfolios, boosting their investments in the local market.
“Large-cap stocks will have a bigger chance of receiving foreign capital asinvestment policy of most funds and financial institutions focuses on leadinglarge-cap stocks,” analysts at BIDV Securities Co wrote in a note.
Liquidity surged on June 20 with a total of 297 million shares worth a combined5.53 trillion VND (243.6 million USD) being traded in the two markets, up 12percent in volume and 8.4 percent in value compared to June 19’s figures.
Foreign traders continued to be net buyers in the two markets, picking sharesworth total net value of 67 billion VND. Their net buys reached 161 billion VNDin the last two days.
On the negative side, some blue chips slumped under rising profit-taking, likeVinamilk (VNM), VinGroup (VIC), Bao Viet Holdings (BVH), Masan Group (MSN), PVGas (GAS) and FPT Corp (FPT).-VNA
