Investors watch stock movements at Saigon Securities Inc (Photo: VNA) Hanoi (VNA) - Large-cap companies continued to drive shares on theHCM Stock Exchange up on November 3, but analysts warned of market volatility overinvestor worries about the market’s dependence on blue chips.
The benchmark VN Index gained 1.28 percent – the highest growthrate since May 22 – to close at 843.73 points.
The VN Index had fallen 1.14 percent on theprevious day but still made a weekly gain of nearly 0.4 percent.
More than 250.8 million shares worth 4.85trillion VND (215.5 million USD) were traded on both bourses, on November 3, aslight increase in both trading volume and value over the previous day.
The market breadth improved, but there wasno big difference between the number of gaining and declining stocks (148 to116).
Large-cap stocks continued to cushion bothlocal exchanges. The VN30 Index, which tracks the performance of the 30 biggestshares by market capitalisation and trading liquidity, gained 1.5 percent.
Among large-cap stocks that advanced, thestrongest gainers were property developers, construction companies, energyfirms and financial businesses, with stocks like FLC Faros Construction (ROS),Kinh Bac City Development Holding Corp (KBC), Bank for Investment andDevelopment of Vietnam (BID), Vietcombank (VCB), VPBank (VPB) and PetroVietnamDrilling and Well Services (PVD).
Bao Viet Securities Co analyst Tran Xuan Bach said in the company’s daily reportthat the VN Index has recouped all losses made in the previous session andmaintained its growth for the two consecutive weeks.
The strong rebound of the index couldimprove investor confidence in the near future, given the increase in gainingstocks after they had fallen sharply in recent sessions, he said.
However, there is no evidence the stockmarket would move up soundly, as it still depended a lot on the strength oflarge-cap stocks, Bach warned, adding that the divergence between large-capstocks and others would make investors more cautious.
Also on November 3, the HNX Index on the HanoiStock Exchange rose 0.91 percent to end at 104.36 points, recovering from athree-day loss of 2.8 percent.
The northern market index dropped total 1.9percent this week.
More than 47.5 million shares wereexchanged on the northern market, worth 476.7 billion VND.
The northern market index was also driven up bylarge-cap shares such as Asia Commercial Bank (ACB), Bao Viet Securities (BVS),PetroVietnam Technical Services (PVS) and Saigon-Hanoi Securities Co (SHS).-VNA
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