Property stocks boost VN-Index

Investors watch share prices at a Vietcombank Securities Co trading floor. The VN-Index bounced back above 710 points yesterday.-VNA Photo Tuan Anh

On the HCM Stock Exchange, the VN-Index rose 0.4 per cent to close at 710.6 points. The southern market index decreased 0.5 per cent in the last two sessions after the index touched a nine-year high last week.

On the Ha Noi Stock Exchange, the HNX-Index added 0.8 per cent to end at 86.5 points. The northern market index gained 0.7 per cent last week.

Property stocks were the market engine as many shares of this group hit the daily limit rise such as Tu Liem Urban Development JSC (NTL), Dat Xanh Real Estate Service & Construction (DXG) and FLC Group (FLC).

Other big real estate companies including Novaland Investment Group (NVL), VinGroup (VIC), Kinh Bac City Development Share Holding Corp (KBC) and Vinaconex (VCG) climbed between 3 per cent and 5 per cent.

“Money continued to flow into many different sectors in order to seek new attractive investment opportunities,” analysts at BIDV Securities Co wrote in a market report.

Speculative stocks such as Hoang Anh Gia Lai Co (HAG) and its agricultural arm Hoang Anh Gia Lai Agricultural Invesment JSC (HNG) increased strongly.

HAG hit the daily maximum rise of 7 per cent on the HCM City exchange to end at VND7,740 per share, extending its rally to seven consecutive sessions. The share has gained over 30 per cent since the beginning of the year.

HNG added 3.8 per cent to settle at VND9,480 apiece, lifting its price up nearly 53 per cent this year.

The agreement of bondholders to extend the maturity date of HAG’s bonds, which were scheduled to be purchased from June 10 to July 09 are responsible for this rise. This delay ensured the long-term capital source for the company’s project.

In addition, the growing price of world rubber will also help boost HAG’s latex, the main business of this group.

Liquidity continued to rise, totaling 247.4 million shares worth a combined VND4.4 trillion (US$193 million), an increase of 11.7 per cent in volume and 15.8 per cent in value compared with last week’s average daily volume and value.

“The VN-Index is likely to move towards the next resistance at 715 points,” said Tran Hai Yen, a stock analyst at Bao Viet Securities Co.

Investment strategy is advised at short-term trading (sell first, then buy) and reducing stock exposure of short-term portfolio, Yen said.

Foreign investors concluded the trade as net buyers for a total value of nearly VND108 billion in the two exchanges, focusing on blue chips such as Eximbank (EIB), Sabeco (SAB), Vinamilk (VNM), Bao Viet Holdings (BVH), Hoa Phat Group (HPG) and VinGroup (VIC).