VN-Index records strongest gain in more than 2 weeks

Vietnam’s benchmark VN-Index made the strongest rebound since the beginning of the month on Wednesday, ending a streak of two consecutive sharp falls.

Closing the session, the index, which tracks the Ho Chi Minh Stock Exchange's (HoSE) performance, climbed 31 points or 3.4% to 942.9 thanks to huge bottom-fishing demand.

There were 415 gainers, including 154 hitting their ceiling prices, and only 63 losers.

The trading value on the major bourse hit nearly VND1.04 billion ($581 million), the highest in eight months, with more than 1.04 million shares changing hands.

The VN30-Index, which features 30 largest-cap stocks, increased 35.52 points or 3.93% to 940.29, with nine tickers hitting their ceiling prices, mostly in the banking sector. Of these, many made a spectacular reversal from the floor price to the ceiling price, including MWG of Mobile World Investment Corporation, GVR of Vietnam Rubber Group, TCB of Techcombank and MBB of Military Bank.

VIC of Vingroup, BID of BIDV bank, GAS of PV GAS, CTG of Vietinbank, and VHM of real estate developer Vinhomes led the market, while VNM of Vinamilk, NVL of Novaland Group, SAB of brewer Sabeco, EIB of Eximbank, and PDR of Phat Dat Real Estate Development Corporation exerted the most negative impact on the VN-Index.

Notably, NVL and PDR continued to hit their floor prices, with 46.8 million and 82.6 million shares waiting for buyers, respectively.

Foreign investors continued to be net buyers for the eight consecutive session to the tune of VND626 billion ($25.26 million). They mainly purchased HPG of steelmaker Hoa Phat and sold VNM.

HNX-Index on the Hanoi bourse increased by 7.67 points or 4.36% to 183.45, while UpCOM-Index on the unlisted public company market rose 2.02 points or 3.19% to 65.32.

The State Securities Commission (SSC), Vietnam’s stock market watchdog, held an urgent meeting on Wednesday amidst a 40% market fall so far this year, the worst performance in the world.

Vietnam’s benchmark VN-Index climbed 31 points or 3.4% to 942.9 on Wednesday, but the index has lost 12% from the beginning of this month.

The market capitalization has gone down by $19.6 billion in half a month. Such a decrease was opposite to the recovery of major foreign markets like the U.S., Japan, China, and South Korea.

Last Friday, the SSC said Vietnam’s stock market has fluctuated strongly due to cautious investor sentiment amid global uncertainties and a less positive economic outlook.

The regulator said it would keep a close watch on the political-economic situation and policies of countries around the world, and make assessments of their impacts on the Vietnamese stock market in order to take suitable measures to ensure its stable and transparent development.