VN-Index hits new 10-year peak (Photo VNA)Hanoi (VNA) - The benchmarkVN-Index hit a new 10-year peak on October 27 after big money flowed intolarge-cap stocks on rising investor confidence in the market outlook.
On the HCM Stock Exchange, the VN-Indexincreased 1.24 percent to close at 840.37 points, the highest level sinceFebruary 12, 2008.
The market was no longer a ‘single-stockgame’ involving FLC Faros Construction Corp (ROS) as happened regularlythroughout the week, but most heavyweight stocks jumped yesterday and liftedthe VN-Index.
Twenty of the top 30 largest shares interms of market value and liquidity on the southern bourse gained value andonly seven declined.
The market driver ROS extended gains withfurther growth of 6.9 percent, slightly lower than the cap of 7 percent allowedfor a single trading day. Market capitalisation of ROS exceeded 4 billion USDon October 27 after its one month rally.
ROS shares have risen consecutively sinceSeptember 27, expanding 85.4 percent in the past month to trade at 196,000 VND (8.63USD) a share.
Besides ROS, many large caps ralliedsubstantially, including Vietcombank (VCB), up 3.5 percent; real estate giantVinGroup (VIC), up 3.1 percent; Vietjet Air (VJC), up 3 percent; Military Bank(MBB), up 2.2 percent; BIDV (BID), up 2.4 percent; Masan Group (MSN), up 2.3 percent;and PV Gas (GAS), up 1 percent.
“Few investors thought the VN-Index couldbreak the resistance level of 840 points,” stock analysts at BIDV Securities Cowrote in the October 27 report.
However, according to these analysts,yesterday’s rally was sudden and not really reliable when the trading volumeand value was low and the cash flow was scattered and focused on some largecaps.
“Like the previous big rally, it is likelythat the market will face correction when the price of stocks was pushed upquite high,” they said.
A few companies continued to trenddownwards yesterday, such as insurer Bao Viet Holdings (BVH), brewer Sabeco(SAB), steelmaker Hoa Sen Group (HSG), Hau Giang Pharmaceutical (DHG) and Binh MinhPlastics (BMP).
Overall market condition was positive with154 stocks rising, 125 falling and 65 closing flat.
On the Hanoi Stock Exchange, the HNX-Indexedged up just 0.13 percent to end at 106.45 points on the lack of blue chips’support.
Liquidity decreased slightly from theprevious session with a total of 181.4 million shares worth a combined 3.85trillion VND (169.7 million USD) traded on the two markets, down over 3 percentin both trading volume and value compared to the October 26 levels
Foreign trade was also positive yesterdaywith total net buy value of 107.5 billion VND on the two exchanges.-VNA
VNA
