A street vendor walks past a trading board of Bao Viet Securities Company in Hanoi (Photo: VNA) Hanoi(VNA) - Shares advanced on both local markets on June 26 as investor confidencewas bolstered by positive business news from listed companies.
The benchmark VN Index on the HCM Stock Exchange and the HNX Index on the HanoiStock Exchange gained 0.46 percent each to close at 772.52 points and 98.73points, respectively.
The VN Index extended gains for a second session with total growth of 0.8 percentwhile the HNX Index reversed a three-session decline of 1.5 percent.
Trading liquidity was modest compared to the previous sessions, with more than294.8 million shares traded on both local exchanges, worth 4.85 trillion VND (215.5million USD).
Sharp rises in some particular shares, such as Japan-Vietnam Medical InstrumentJSC (JVC) and PetroVietnam Drilling and Well Services (PVD), following news ontheir businesses were a major reason behind the rise.
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Shares of JVC and PVD both hit their daily trading limit of 7 percent allowedon the HCM Stock Exchange.
On June 26, JVC reported a four-fold increase in its net profit to over 16billion VND for the fourth quarter of fiscal year 2016-17, which lasted fromApril 1, 2016 to March 31, 2017, admitting that there were some mistakes withthe firm’s accounting action.
PVD on June 23 announced it had signed six drilling contracts with the Russianoil group Rosneft, worth 42 million USD, to provide drilling services and rigsfor the Russian firm’s operations in the near future.
Increasing oil prices also made a positive impact on local energy stocks suchas PetroVietnam Gas (GAS) and PetroVietnam Mud Drilling (PVC). Brent crude rose0.1 percent to trade at 45.57 USD a barrel.
Market analysts also attributed the market gains to the recovery of bank stocksafter they suffered from profit-taking last week on expectations that thelatest bad debt settlement resolution, passed by the National Assembly on June 21,would help local lenders improve their financial strength and raise profits in2017.
Five of the nine listed banks increased, including large-cap stocks such asVietcombank (VCB), BIDV (BID) and Vietinbank (CTG). The five bank stocksadvanced between 0.9 percent and 1.6 percent.
According to Saigon-Hanoi Securities (SHS), the stock market would remainpositive in coming sessions and forecast that the VN Index would head to thelevel of 775 points on June 27 and the support range for the benchmark would be765-769 points.-VNA
VNA
