Investors at MB Securities Co in Hanoi (Photo: VNA) Hanoi (VNA) – Shares rebounded on October 24 onthe two national stock exchanges after a flop the previous day, propped up bythe strong growth of several major large caps.
The benchmark VN-Index on the HCM Stock Exchange rallied 0.63percent to close on October 24 at 825.24 points, off-setting October 23’s lossof 0.25 percent.
Large-cap stocks recovered and led the upturn as over half ofthe top 30 largest shares by market value and liquidity gained value and 10declined.
FLC Faros Construction’s stock (ROS) was the biggest gainer,rising by the daily maximum limit of 7 percent at 161,300 VND (7.11 USD) pershare. This is the 19th consecutive session of gains for the stock, with cumulativegrowth of 52.6 percent since the rally began.
Meanwhile, the biggest listed energy company PV Gas (GAS)picked up 2.4 percent to settle at 69,700 VND a share. PV Gas reported nearly 15.1trillion VND (665.2 million USD) in net revenue in the third quarter, up 9.4percent year-on-year. Its strong Q3 number came from higher oil price and theelimination of turnaround from Nam Con Son Pipeline in 2017, which helpeddouble its net profit to 1.9 trillion VND.
Besides ROS and GAS, many heavyweight blue chips such asVinamilk (VNM), Mobile World Group (MWG), Binh Minh Plastic (BMP), Vietcombank(VCB), Military Bank (MBB) and brewer Sabeco (SAB) also rose.
According to Viet Dragon Securities Company (VDS), the markettrend is still mainly dependent on large-cap movements, as investors havebecome more cautious and conservative with speculative stocks.
Investors may buy on rumors of earnings results of listedcompanies. However, the picture of profit is not clear enough to encourageaccumulation of stocks at this time and there is a high probability that theVN-Index will decline in November, VDS analysts wrote in the October strategyreport.
On the Hanoi Stock Exchange, the HNX-Index recovered part ofits Monday losses, closing up 0.42 percent at 106.69 points.
A total of over 223 million shares worth a combined 6.7trillion VND (296 million USD) were traded in the two markets on October 24.These figures represented a decrease of 15.5 percent in volume but an increaseof 28.8 percent in value compared to October 23’s levels.
Strong growth in trading value came from put-through(negotiated) transactions worth a total of 3.5 trillion VND. Transactions onshares of dairy giant Vinamilk accounted for 80 percent of the total.
Over 18.1 million Vinamilk shares worth nearly 2.8 trillionVND changed hands by foreign traders on October 24.
Earlier, F&N Dairy Investment registered to buy nearly 21.77 million sharesof Vinamilk from October 2 to 31 through order matching or put-through trade onthe stock exchange. F&N Dairy Investment currently holds 16.04 percent ofVinamilk’s charter capital. If the transaction is carried out successfully, itsownership in the Vietnamese dairy firm will increase to 17.54 percent.
Vinamilk’s shares have expanღded 18.6 percent this year andare currently traded at around 149,000 VND a share.-VNA
