Hanoi (VNA) – Shares rebounded on December 21 on the two national stockexchanges, boosted by stronger investor confidence and a return of foreignbuys.

The VN Index on the HCM Stock Exchange edged up 0.7 percent after a two-dayfall, closing the day’s trade at 666.9 points. The gauge had decreased by 1.83per cent in the previous two sessions.

On the Hanoi Stock Exchange, the HNX-Index also increased 0.6 percent to end at80.3 points following a 0.2-per-cent drop on December 21.

Dairy firm Vinamilk (VNM)--the biggest listed stock--increased 1.2 percent to 126,100VND (5.56 USD) a share following encouraging earnings estimate.

Vinamilk expects to earn a net profit of over 9.3 trillion VND (409.7 millionUSD) for this whole year, up 20 per cent year-on-year and surpassing the yearlytarget by 13 percent.

Brewery giant Sabeco (SAB), the second largest stock by market capitalisation,rebounded 1.8 percent on December 21 to settle at 200,800 VND a share after atwo-day decline.

Big gainers also included PV Gas (GAS), lender BIDV (BID), insurer Bao VietHoldings (BVH) and private equity Masan Group (MSN) with increases between 0.8percent and 1.7 percent.

Overall market conditions were rather neutral, with 212 stocks advancing, 202declining and 280 remaining flat.

Liquidity increased with a total of 164.4 million shares worth over 3.3trillion VND traded in the two markets, up 21.8 percent in volume and 38.3 percentin value compared to December 20’s figures.

A large number of shares were traded via negotiation method on December 21,including 20.2 million shares of Saigon Telecommunication & TechnologiesCorporation (SGT) worth 524.7 billion VND, 1.25 million shares of Phu Nhuan Jewelry(PNJ) worth 91 billion VND and 4.4 million shares of Kinh Bac City Development(KBC) worth 61 billion VND.

According to analysts at Vietnam Investment Securities Co, the VN-Index hasbeen distorted by movements of large-cap stocks such as Vinamilk and Sabeco inrecent sessions and has not reflected the true developments of the market.

“Shares showing strong gains from the recent rally will experienceprofit-taking pressure, and money will continue to shift to seek otherinvestment opportunities. Reporting season is coming, and this will supportstock prices in the next rally,” they wrote in a report.

Foreign investors returned to be net buyers in HCM City’s exchange on December21 after five-day net selling streak. They collected shares worth a net valueof 80.4 billion VND.

However, they remained net sellers in Hanoi’s market, for a value of 11.7billion VND.-VNA