12/01/2017 09:55 GMT+7 print

Banks, energy firms push market up

Hanoi, January 12 (VNA) - Shares rose on both local bourses on January 11 as bank stocks bounced back on expectations for positive 2016 earnings reports and energy firms recovered on upward moves in oil prices.

The benchmark VN Index on the HCM Stock Exchange gained 0.9 percent to close at 687.16 points. The southern bourse index on January 10 fell 0.2 percent after rallying 2.9 percent in seven days.

The HNX Index on the Hanoi Stock Exchange continued to advance for a fourth session, adding 0.5 percent to end at 83.49 points. The northern market index has increased by 2.7 percent since January 5.

More than 132 million shares were traded on both local bourses, worth 2.7 trillion VND (120.66 million USD).

Bank stocks continued to play key role to lift the national stock market up. Six of the nine listed banks made gains, including Asia Commercial Bank (ACB), BIDV (BID) and Vietinbank (CTG).

Those bank stocks rose 2.9 percent, 3.1 percent and 4.7 percent, respectively. BID was also the most active stock with nearly 7.3 million of its shares being exchanged.

According to Nguyen Ngoc Lan, Agribank Securities Company’s head of brokerage division, bank stocks may extend their gains this year as investors are betting on their positive earnings reports for 2016.

“Bank stocks are also supported by some information such as the decision of the central bank to allow Vietcombank, BIDV and Vietinbank - the three State-owned commercial banks – to increase their lending-deposit ratio by 10 percent to 90 percent, the market speculations on the restructuring of weak-performing banks, and the raising of foreign ownership in bank capital,” Lan said.

In addition, higher global crude prices helped push energy stocks up, including PetroVietnam Gas Corp (GAS), PetroVietnam Drilling and Well Services Corp (PVD) and PetroVietnam Technical Services Corp (PVS). Those three stocks added 0.6 percent in average.

Brent crude was up 0.6 percent to trade at near 54 USD a barrel and US crude WTI advanced 0.7 percent to trade at 51.15 USD a barrel.

Other large-cap stocks also closed in positive territory, including Bao Minh Insurance Corp (BMI), insurer-finance group Bao Viet Holdings (BVH), brewer Sabeco (SAB), dairy producer Vinamilk (VNM) and real estate corporation Vingroup (VIC).