Vietnamese shares tracked global markets higher on Wednesday, led by gains in banking stocks.

 

The VN-Index at the Hồ Chí Minh Stock exchange rose 0.73 per cent to close at 881.17 points.

 

Nearly 352 million shares worth VNĐ5.4 trillion (US$233 million) were traded.

 

Market breadth was positive with gainers outnumbering losers by 203 to 157.

 

The benchmark index had lost 0.44 per cent on Tuesday to close at 874.80.

 

The market got a boost from investor confidence after US stocks moved up.

 

The Dow Jones Industrial Average rose by 1.05 per cent to 25,742.65, the S&P 500 by 0.82 per cent to 3,080.82 and the Nasdaq Composite by 0.59 per cent to 9,608.38.

 

Large cap stocks performed well on Wednesday with the VN30-Index, which tracks the performance of the 30 largest stocks by market value and trading liquidity, gaining 0.68 per cent to close at 824.29 points.

 

Fifteen out of 25 sectors posted gains, including retail, banking, energy, food and beverages, information and technology, real estate, and agriculture.

 

The losers included construction, construction materials and insurance.

 

The banking index gained 2.08 per cent as lenders attracted strong interest from investors.

 

Notable gainers included the HCM City Development Joint Stock Commercial Bank (DHB), Asia Commercial Bank (ACB), Bank for Investment and Development (BID), Vietinbank (CTG), Military Bank (MBB), VPBank (VPB), Techcombank (TCB), and Tien Phong Bank (TPB).

 

HDB hit the 7 per cent daily ceiling for a second day, closing at VNĐ28,500 per share.

 

Other heavyweight stocks such as FPT Corporation (FPT), Masan Group (MSN), Vingroup (VIC), Vinamilk (VNM), National Petroleum Group (PLX), Vincom Retail (VRE), Phú Nhuận Jewelry (PNJ), Vinhomes (VHM), and Mobile World Group (MWG) also gained.

 

Thanks to a sharp rise in global oil prices, gains were also seen in oil and gas stocks like PetroVietnam Gas JSC (GAS), PetroVietnam Technical Services Corporation (PVS), PetroVietnam Drilling & Well Services Corporation (PVD), PetroViet Nam Coating JSC (PVB), and Drilling Mud Joint Stock Corporation (PVC).

 

Oil gained on Wednesday, with Brent above $40 for the first time since March, on hopes that major producers will extend output cuts and a recovery from the pandemic will boost demand for fuel.

 

The HNX-Index on the Hà Nội Stock Exchange rose 2.5 per cent to close at 116.49 points.

 

Nearly 62.3 million shares changed hands for VNĐ670 billion.

 

“The market faces resistance at 880-888 points, which is expected to interfere with its upward momentum,” Bảo Việt Securities Co said.

 

“Since the market has become overbought, volatility and considerable fluctuations are expected.

 

“Cash flows will possibly see a wide divergence among sectors. Large-cap stocks are not expected to break through amidst ETFs’ upcoming review session.” — VNS