Banks lead market upturn

Traders at the Saigon Securities Inc office in Ha Noi. - VNS Photo Doan Tung

On the HCM Stock Exchange, the VN-Index surpassed the latest nine-year peak recorded on July 6, hitting 783.48 points, a rally of 0.82 per cent over Friday’s close.

The benchmark index expanded 2 per cent last week.

On the Ha Noi Stock Exchange, the HNX-Index increased 0.63 per cent to end at 101.18. The northern market index gained 2.6 per cent in the previous week.

“The risk of a short-term sharp decline was significantly diminished. Large-cap stocks, especially bank stocks, are supporting the indices’ uptrend,” said Tran Hai Yen, a stock analyst at Bao Viet Securities Co (BVSC).

Banks were the biggest gainers yesterday, with an average growth of 2.33 per cent, data on vietstock.vn showed.

Seven of nine listed banks gained value, with two of the three largest banks by market value, BIDV (BID) and Vietinbank (CTG), increasing 5.7 per cent and 4.6 per cent, respectively.

The largest lender, Vietcombank (VCB), edged up 0.7 per cent.

According to BVSC’s report, Vietcombank is the most profitable bank with pre-provision operating profit of VND5.05 trillion (US$224.7 million) by the end of June, up 20.5 per cent year-on-year and fulfilling 54 per cent of its yearly target.

BIDV also recorded positive earnings with pre-tax profit for the first six months reaching VND4.05 trillion, a year-on-year increase of 24.7 per cent and completing 54 per cent of the goal it set for the year.

Military Bank (MBB) posted over VND2.5 trillion worth of pre-tax profit in the first half of this year, rising 36 per cent over the same period last year and achieving 55 per cent of its yearly target. MBB’s shares advanced 1.3 per cent yesterday.

“Solid earnings results as well as benefits of the bad debt resolution law and quantitative easing policy are drawing cash flows into bank stocks," Yen said.

Other blue chips were mixed. Insurer Bao Viet Holdings (BVH), PV Gas (GAS), VinGroup (VIC), Sabeco (SAB), Novaland Investment (NVL) and FLC Faros Construction (ROS) advanced. However, dairy giant Vinamilk (VNM), FPT Corp (FPT), Mobile World Group (MWG) and Kido Group (KDC) tumbled.

Liquidity increased with a total 345 million shares worth VND5.4 trillion being traded in the two markets, up 34.3 per cent in volume and 25.6 per cent in value compared with last week’s daily average volume and value.