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Shares surge, VN-Index breaks historic high of 1,200 points

Việt Nam’s stock market edged higher on Thursday with the market benchmark finally crossing 1,200 point-level after many attempts.

On the Hồ Chí Minh Stock Exchange, the VN-Index closed Thursday’s trade at 1,200.94 points, up 1.25 per cent (equivalent to 14.85 points).

The market’s breadth was positive as 250 stocks rose with bank stocks leading the rally, while 178 stocks decreased and 85 stocks finished flat.

The market’s liquidity was also high as domestic investors poured more than VNĐ15.4 trillion into the southern market, with a trading volume of over 628.6 million shares.

The VN30-Index, tracking the 30 biggest stocks in market value, increased 1.52 per cent, equivalent to 18.09 points, to 1,211.54 points. Of the VN30 basket, 24 stocks increased, while only four fell.

On the Hà Nội Stock Exchange (HNX), the HNX-Index reversed the morning course to finish higher on Thursday. The index rose 0.34 per cent to 277.48 points, with the HNX30-Index also increased 1.39 per cent to 405.27 points.

In a daily report to customers, MB Securities Co. said that the market is gaining strength from the surge of banking and finance sector and its rally is spreading to other sectors. Investing in diversified sectors helps the market’s liquidity stay high.

“We’re sure that the market is getting stronger and gradually edging higher as domestic cash inflows are the main driving force. Expectations in the bullish trend are rising, so we think that the market is heading to the target of 1,200 points,” the securities firm said.

Of top five stocks affecting the market’s rally, three were from banking sectors with gains of more than 1 per cent. These stocks were Vietcombank (VCB), up 1.99 per cent, JSC Bank For Investment And Development of Viet Nam (BID), up 3.93 per cent, and Techcombank (TCB), up 4.09 per cent.

The other two were from construction and materials sectors, which included Vingroup JSC (VIC), up 1.81 per cent, and Việt Nam Dairy Products JSC (Vinamilk, VNM), up 1.99 per cent.

Stocks from information technology, logistics and retails also posted good performance.

Meanwhile, utilities stocks dropped sharply with PetroVietnam Gas JSC (GAS) down 1.08 per cent, PetroVietnam Power Corporation (POW) down 0.72 per cent, and Power Generation JSC 3 (PGV) down 1.12 per cent.

Foreign investors kept selling on HoSE as they net sold a value of VNĐ349.09 billion, while net buying a value of VNĐ120.1 million on the HNX.

Global stocks also rose on Thursday after after the Federal Reserve committed to maintaining dovish policy and projected a rapid jump in US economic growth this year.

Accordingly, S&P 500 Index climbed 0.29 per cent to 3,974.12 points, Nikkei 225 Index rose 1.01 per cent to 30,216.75 points, and Kopsi Index increased 0.61 per cent to 3,066.01 points. – VNS