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VN market advances for a fourth straight day

Local shares extended gains for a fourth straight day on Tuesday as market sentiment returned to the positive territory and strong domestic purchasing offset foreign net selling.

The benchmark VN-Index on the Hồ Chí Minh Stock Exchange advanced 1.14 per cent to 891.73 points.

The VN-Index has increased by more than 2.09 per cent in the last four trading days since Thursday.

The blue-chip tracker VN30-Index added 0.98 per cent to 832.03 points while mid-cap and small-cap indices moved by 1.55 per cent and 0.81 per cent, respectively.

In the blue chip basket, 24 of the 30 largest stocks by market capitalisation and trading liquidity expanded values while four was down.

Leading the chart were property developer Vingroup (VIC), Techcombank (TCB), Vietinbank (CTG), PetroVietnam Gas (GAS) and dairy producer Vinamilk (VNM).

Their shares gained between 1.8 per cent and 3.0 per cent.

By sector, insurance, real estate, securities, brokerages, consumer staples, and aquaculture were the best performing sectors.

The aviation sector was lifted by strong gains of Vietnam Airlines (HVN) and Vietjet (VJC), which advanced 3.1 per cent and 2.4 per cent, respectively.

On the Hà Nội Stock Exchange, the HNX-Index moved up 0.45 per cent to 125.41 points.

The northern market index fell 0.78 per cent on Tuesday.

According to MB Securities Co (MBS), the market was not put under the strong pressure from foreign net selling.

“Domestic investors’ purchases for local stocks absorbed the selling of foreign investors,” MBS said in its daily report.

Nearly 368.5 million shares were traded on the two exchanges, worth VNĐ6.63 trillion (US$287.6 million).

Foreign investors net-sold nearly VNĐ200 billion worth of local shares, down a third from Monday’s figure.

“The gains of large-cap sector also had positive impact on mid-cap stocks and it may suggest the VN-Index now targets its previous peak of 905 points made in June,” MBS said.

In addition, part of the improved sentiment came after China announced its Purchasing Managers’ Index (PMI) was 51 in August, the highest in 10 years.

Thành Công Securities Co (TCSC) said that the market rally would continue but investors should be aware of the bull trap as the VN-Index might struggle when it approaches the 895-905 range.

The Vietnamese market will take a break on Wednesday for the celebration of the Independence Day. — VNS

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