Investors watch share prices on electronic boards at Saigon Securities Inc (Photo: VNA) Hanoi(VNA) – Both stock indices rebounded on June 5, driven by a recovery among bankstocks, as traders sought bargains after a short decline last week.
On the HCM Stock Exchange, the VN-Index edged up 0.63 percent to close at743.49 points. The southern market index decreased 0.6 percent last weekfollowing a five-week rally.
On the Hanoi Stock Exchange, the HNX-Index inched up 0.60 percent to end at 94.93points. The northern market index rose 0.73 percent last week.
Overall market condition was positive with 246 stocks rising, 208 declining and250 remaining unchanged on the two exchanges.
However, while shares in the banking, mining, fertiliser and rubber sectorsrecorded growth, shares in construction, real estate and plastic manufacturingindustries continued to decline.
For banks, eight out of nine listed lenders advanced and only Eximbank (EIB)closed flat. BIDV (BID), Vietcombank (VCB) and Sacombank (STB) were the biggestgainers with each seeing rises of around 2.4 percent.
Major large-cap stocks contributing to the market rise also included dairygiant Vinamilk (VNM), petrol retailer Petrolimex (PXL) and PV Gas (GAS).
On the negative side, both Hoang Anh Gia Lai Co (HAG) and its agribusiness armHoang Anh Gia Lai Agriculture Investment Co (HNG) dropped by the maximum rateof 7 percent allowed on the HCM Stock Exchange, following news thatLondon-based FTSE exchange-traded fund removed HAG shares from its portfolio inthe second-quarter review.
HAG and HNG are two of the top 30 largest shares by market value and liquidityon the HCM Stock Exchange.
Foreign traders sold net two million HAG shares on June 5, putting heavypressure on the share price. Saigon Securities Inc has estimated FTSE ETF maysell over 10.2 million HAG shares in the future.
Late last week, FTSE EFT reported it would remove HAG, insurer Bao VietHoldings (BVH) and PetroVietnam Power Nhon Trach 2 Co (NT2) from its portfolioin the next quarter while adding shares of real estate Novaland InvestmentGroup (NVL) and Sacombank (STB).
BVH closed unchanged while NT2 increased by over 1 percent.
According to analysts at BIDV Securities Co, the VN-Index may overcome theshort-term resistance level of 750 points if liquidity continues to be steadyand large-cap stocks sustain growth.
A total of 285.6 million shares worth over 5.8 trillion VND (255.6 million USD)were traded in the two markets.-VNA
VNA
