An investor watches electronic boards showing share prices at MB Securities Co. (Photo: VNA) Hanoi (VNA) - The benchmarkVN-Index surpassed the short-term resistance of 780 points on July 6, closingup 0.56 percent at 782.65 points, thanks to strong investor confidence in themarket outlook.
This is the highest landmark since early2008. The key index on the HCM Stock Exchange has expanded over 17 percentsince the beginning of this year.
On the Hanoi Stock Exchange, the HNX-Index rosefor a third day, adding 0.67 percent to close the July 5 session at 102.60points. The northern market index has soared over 28 percent compared to theend of 2016.
Investors were solid on the market outlookand increased capital flows in the markets.
A total of 341 million shares worth acombined 4.9 trillion VND (216 million USD) were traded on the two markets, up18.8 percent in volume and 11.4 percent in value compared with the previoussession.
Money shifted focus on penny and medium-capstocks. Shares of Tan Tao Investment and Industry (ITA), Hoang Quan Consulting-Trading-ServiceReal Estate (HQC), HAI Agrochem (HAI) were still among the most purchased onthe HCM Stock Exchange.
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Among these stocks, ITA hit the dailymaximum rise of 7 percent allowed on the HCM City market for a third day,settling at 4,940 VND a share. The shares have gained value for nine of thelast 10 sessions with a total growth of 45.7 percent following the result ofits annual shareholders’ meeting on June 26.
At the meeting, ITA announced its ambitiousbusiness targets for 2017, of which total revenues will likely reach 880.4billion VND and net profit of 309.2 billion VND, a rise of 160 percent inrevenue and 700 percent in profit compared to 2016’s performance.
Besides, many low-priced shares alsoreceived large investments including real estate developer An Duong Thao Dien (HAR),Vicem Hai Van Cement (HVX), Lao Cai Mineral Exploitation & Processing(LCM), and Agribank Securities Co (AGR) which hit the daily limit gain.
For large-cap stocks, energy firms wereamong the biggest gainers with PV Gas (GAS), Petrolimex (PLX) and PetrolimexGas Corporation (PGC) adding up 1 percent, 3.2 percent and 3.6 percent,respectively.
According to analysts at MaritimeSecurities Co, the market will likely face a downward correction after a strongrally.
“Cash has been moving to small- andmedium-cap shares which may indicate the possibility of a short-termcorrection,” they wrote in a note and suggested a hold-and-buy strategy whileconsidering profit taking of the stocks that have risen sharply.-VNA
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