VN stocks reach 8-month high
hanguyen0409 15-10-2020, 06:36
VN stocks reach 8-month high

A skyscraper built by conglomerate Vingroup (HoSE: VIC) in District 1 HCM City. The company shares gained nearly 1.0 per cent on Wednesday. — Photo

Vietnamese shares soared on Wednesday, propelled by the positive performance of the large-cap sector.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange gained 111 per cent to 94018 points.

The VN-Index has increased by total 232 per cent in the last four trading days.

Large-cap companies kept progressing to boost the domestic market.

The blue-chip tracker VN30-Index rose 157 per cent to 89215 points.

The VN30 futures due on October 15 rose nearly 2.1 per cent to 89480 points.

Twenty-two of the 30 largest stocks by market capitalisation and trading liquidity in the VN30 basket increased while six declined.

Among the best performers in the large-cap sector were consumer firm Masan (MSN), Techcombank (TCB), Bank for Investment and Development of Viet Nam (BID), brewer Sabeco (SAB), SSI Securities (SSI), Vingroup (VIC) and retailer Mobile World Investment (MWG).

Among those large-caps, MSN and TCB surged 7.0 per cent and 6.8 per cent, respectively. Other stocks advanced between 2.6 per cent and 4.0 per cent.

The positive growth of large-cap stocks helped cloud the negative sentiment in mid-cap and small-cap stocks.

The mid-cap tracker VNMID-Index inched up 012 per cent while the small-cap tracker VNSML-Index slid 024 per cent.

The retail, banking, securities, insurance, agriculture, food and beverage, and medical and pharmaceutical sectors were among the best-performing industries on Wednesday.

Nearly 475 million shares were traded on the southern bourse, worth nearly VND14.4 trillion (US$621.3 million).

The market is being driven by a few large-cap stocks such as brewer Sabeco (SAB) and Techcombank (TCB), which are luring attention for their own business news, Thanh Cong Securities Co (TCSC) said in its daily report.

The growth of those large-cap stocks spurs the market to new highs, the company said.

However, the market’s dependence on the large-cap sector may put the market at risk of strong correction if those large-caps suffer from profit-taking, the company warned.

“The profit taking may arise around 940 points and the VN-Index could turn back down to its lower levels in coming days,” BIDV Securities Corp (BSC) said in a note.

On the Ha Noi Stock Exchange, the HNX-Index rose nearly 1.0 per cent to 13749 points.

The northern market index inched up 018 per cent on Tuesday. — VNS