The VN-Index rebounded on Tuesday, October 25 after four consecutive falling sessions, led by the banking, insurance, and steel stocks.
The VN-Index rebounded on Tuesday after four consecutive falling sessions, led by banking, insurance, and steel stocks.
On the Hồ Chí Minh Stock Exchange, the VN-Index increased 1.17 percent to close at 997.70 points. It lost 3.3 percent on Monday and a cumulative 7.4 percent in the four previous sessions. Thus, the recovery was a positive sign after a steep fall.
Liquidity also improved with 751 million shares worth VNĐ12.6 trillion (US$514.3 million) traded, up 15 percent in volume and 4 percent in value compared to Monday’s levels.
The banking industry was the market’s main driving force in the latter half of the session with an average growth of nearly 3 percent, according to data on vietstock.vn. The biggest contributors to the VN-Index included Vietcombank (VCB), up 2.8 percent; Vietinbank (CTG), up 6.9 percent; BIDV (BID), up 3.1 percent; Military Bank (MBB), up 5.1 percent; and Asia Commercial Bank (ACB), up 4.6 percent.
Growth of insurance stocks also supported the market with big names such as Bảo Việt Holdings (BVH), Bảo Minh Insurance (BMI), PVI Holdings (PVI) and Vietnam National Reinsurance (VNR) each rose by more than 4 percent. Small companies such as Military Insurance Co (MIG) and PVI Reinsurance Corp (PRE) also added more than 3 percent.
The recovery of steel stocks was also a bright spot in the market on Tuesday. The largest steel manufacturer Hòa Phát Group (HPG) climbed by 4.3 percent, Hoa Sen Group (HSG) hit the ceiling price of 7 percent growth and Nam Kim Steel (NKG) increased by 3.1 percent.
According to an analyst at Viet Dragon Securities Co, improving liquidity showed an effort to contain the market's decline. With this slight movement, it’s possible that the market will recover slightly to re-test the supply at 1,000 points.
“However, it’s worth noting that the overall trend of the market is still negative and this 1,000-point area is becoming a resistance zone of the market. Therefore, investors still need to be cautious and observe supply and demand movements to assess the state of the market,” market analyst Phương Nguyễn said in a note.
Meanwhile, on the Hà Nội Stock Exchange, the HNX-Index declined for a fifth straight session, losing 0.71 percent to end the trade at 208.02 points. The northern market’s index has lost nearly 10 percent since October 18.
Liquidity was almost unchanged with 78 million shares worth more than VNĐ1 trillion being traded.
Foreign traders were mixed. They continued to be net sellers in HCM City’s market with a net sell value of VNĐ85 billion but were net buyers in the Hà Nội market with a net value of nearly VNĐ11 billion.