Large-caps support shares’ uptrend

Shares rose on Thursday due to strong cash flow pouring into banking stocks, after experiencing strong volatility during most of the trading session.
Investors watch market movements at the Military Bank Securities (MBS) trading floor. (Photo: VNS)
Investors watch market movements at the Military Bank Securities (MBS) trading floor. (Photo: VNS)

The VN-Index edged up 1.07 per cent to close at 1.124,15 points. It had fallen 0.72 percent to close at 1,112.26 points on Wednesday.

The minor HNX Index on Hanoi Stock Exchange was up 0.43 percent to end at 126.14 points, reversing from its previous drop of 1.36 percent.

More than 144.01 million shares, worth VND3.4 trillion (US$150 million), were traded on the two local bourses.

The market breadth was positive with 265 gaining shares, 192 declining ones and 273 stocks ending flat.

The UPCOM Index on the Unlisted Public Company Market gained 0.60 percent to stand at 60.84 points on Thursday.

The unlisted market index had lost 0.89 percent on Wednesday.

Foreign investors were selling VND114.24 billion on HOSE with VRE (VND51.5 billion), VJC (VND47.8 billion) and DXG (VND44.56 billion). In addition, they sold net VND1.09 billion on the HNX.

As many as 17 of the 30 largest shares by market capitalisation advanced on the VN30 Index.

Vingroup Joint Stock Company (VIC) is Thursday’s leader as it gained the most (5 percent) in the VN30 group, followed by other names like Vietnam Dairy Products Joint Stock Company (VNM), Bao Viet Holdings (BVH) and Vietjet Aviation Joint Stock Company (VJC), supporting the index’s uptrend in the afternoon.

VPB is the most noticeable one in the banking shares that contributed to Thursday’s gain, up 5 percent.

Also, some mid-cap and penny real estate stocks rallied, typically Thu Duc Housing Development Corporation (TDH), Kinh Bac City Development Share Holding Corporation (KBC) and Quoc Cuong Gia Lai Joint Stock Company (QCG).

According to BIDV Securities JSC (BSC), the agreement on the Comprehensive and Progressive Trans-Pacific Partnership’s (CPTPP) officially signing in Chile on March 8, has a slight impact on the direct beneficiaries such as Sao Ta Foods Joint Stock Company (FMC), Thanh Cong Textile Garment Investment Trading Joint Stock Company (TCM), and TNG Investment and Trading JSC (TNG).

“It seems like the market is supported by the CPTPP. The CPTPP positively affects some sectors such as fisheries and textiles,” BSC said in its daily report.

Meanwhile, Viet Dragon Securities Co (VDSC) said the industrial real estate sector can benefit indirectly from the CPTPP as more foreign investors will focus on Vietnam, lifting the demand for industrial land.

However, shares of fisheries and textiles reflected the effect of the CPTPP (previously TPP) over the last two years. On the other hand, sectors that have a large market cap such as banking, real estate (residential), F&B with big names like VNM, SAB, MSN tend to be immune from this agreement, it added.

“Currently, the market is still moving sideways. CPTPP may have a short-term effect but as we stated above, we are not making a big bet on the positive effect of the agreement on the market movement. Rising volumes in a rising market shows that investors are getting more confident,” VDSC said in its daily report.