Local stocks surge on more stimulus hopes

HÀ NỘI — Vietnamese shares’ expansion continued on Thursday with banks taking the lead on expectations of further economic stimulus.

The benchmark VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) rose  一. 三 八 per cent to end at  八 七 六. 四 六 points, extending its rally to a fifth day with total growth of  四.0 四 per cent.

Market sentiment was lifted after Prime Minister Nguyễn Xuân Phúc, specialists and officials discussed more stimulus and incentive packages to help propel the economy, which has been hit hard by the COVID- 一 九 pandemic.

The blue-chip tracker VN 三0-Index gained  一. 四 九 per cent to  八 一 七.0 八 points and  二 八 of the  三0 largest stocks by market capitalisation and trading liquidity finished Thursday on the positive side.

On the derivatives market, the VN 三0 futures that mature on July  一 六 were up  一. 六 三 per cent to  八 一 五. 二0 points. Other VN 三0 futures gained between  二 一. 四 per cent and  二 六. 八 per cent.

Among large-cap gainers were brewer Sabeco (SAB), PetroVietnam Gas (GAS), retailer Phú Nhuận Jewellery JSC (PNJ), tech group FPT (FPT), insurer Bảo Việt Holdings (BVH), and PetroVietnam Power Corp (POW).

Nine of the  一0 banks listed on the southern bourse advanced with the best performers private equity institutions such as HDBank (HDB), VPBank (VPB), Techcombank (TCB), Sacombank (STB) and TPBank (TPB).

The mid-cap and small-cap trackers were up  一. 六 per cent and  一. 四 九 per cent, data on HoSE showed.

On a sector basis, the banking sector index finished Thursday up  一. 五 per cent, according to vietstock.vn.

The information-technology, mining-energy, construction, retail, and seafood indices were up between 0. 七 per cent and  三. 九 per cent.

On the Hà Nội Stock Exchange, the HNX-Index increased by  一. 五 七 per cent to close Thursday at  一 一 六. 一 六 points.

The northern market index has advanced a total of  四. 一 三 per cent since the beginning of the week.

More than  三 五 六. 六 million shares were traded on the two exchanges, worth VNĐ 五. 七 二 trillion (US$ 二 四 七. 七 million).

Foreign investors net-sold a total of VNĐ 一 六 二. 六 billion of local shares on Thursday.

“The market may maintain its recovery trend in the short term toward  八 八 三- 八 八 八 points,” analyst Trần Xuân Bách at Bảo Việt Securities Co said in a note.

After beating the resistance zone of  八 七0- 八 七 五 points, the market would go through a volatile period to retest the upcoming peak, he said.

With listed companies about to release their second-quarter earnings reports, the market would have “a wide divergence among sectors” and the momentum “is still facing difficulties,” he said.

Attention will be driven into the groups of top-performing industries such as banks, securities firms, information-technology companies and steelmakers, Bách added. — VNS