07/06/2017 09:21 GMT+7 Email Print Like 0

Bank shares lift VN-Index over threshold

On the HCM Stock Exchange, the VN-Index increased 1.05 percent to close at 751.31 points, marking a new nine-year peak for the third time in the past month. 

On the Hanoi Stock Exchange, the HNX-Index edged up 0.86 percent to end at 95.74 points. The northern market index rose 2.7 percent in the last five sessions. 

The banking sector remained the major support for the market as eight of nine listed lenders advanced, of which Sacombank (STB) and Nam Viet Bank (NVB) hit the ceiling prices. 

FTSE ETF late last week added shares of Sacombank into its portfolio in the next quarter together with real estate company Novaland Investment Group (NVL). 

Four of the biggest valued banks including Vietcombank (VCB), BIDV (BID), Vietinbank (CTG) and Military Bank (MBB) leapt 1.6-3.9 percent each. 

Bank shares recorded an average growth of 3.26 percent, according to data on vietstock.vn on June 6. 

The Government’s recent resolution on bad debt settlement and the central bank’s allowance for State-owned commercial joint stock banks to keep dividends which are supposed to be paid to the State budget to hike their charter capital are expected to boost business results of banks this year. 

Growth of other large-cap stocks like Vinamilk (VNM), brewery Sabeco (SAB), Petrolimex (PXL) and PV Gas (GAS) also contributed to the market rise. 

Steel shares were on the uptrend given strong buys from foreign traders. Hoa Phat Group (HPG) and Hoa Sen Group (HSG), the two biggest listed steelmakers, were the two most purchased by the foreign sector. 

Net buy values on these two shares were 61 billion VND (2.7 million USD) for HPG shares and roughly 23 billion VND on HSG shares. 

According to analysts at Bao Viet Securities Co, profit-taking pressure is likely to dramatically increase in coming sessions. With declining liquidity, investors should avoid new disbursement and wait for more signals from the market, they said. 

Liquidity decreased on June 6 with a total of over 261 million shares worth 4.8 trillion VND (211.5 million USD) traded in the two markets, down 8.6 percent in volume and 17.2 percent in value compared to the previous day’s figures.
VNA/VNP