VN-Index witnesses largest one-day gain in 19 years

08:49 | 07/04/2020
The Vietnamese benchmark VN-Index recorded its largest daily gain in 19 years on Monday, following last week’s late gains thanks to upbeat global mood on the slowdown in COVID-19-related deaths and new cases.
vn index witnesses largest one day gain in 19 years
Customers at a branch of Bank for Investment and Development of Vietnam (BID) in Ha Noi before the pandemic. BID hit a steep daily rise of 7 per cent on Monday.-Photo bidv.com.vn

The VN-Index on the Ho Chi Minh Stock Exchange (HoSE) jumped 4.98 per cent to end Monday trade at 736.75 points, its largest one-day percentage gain in nineteen years.

The last time the VN-Index experienced a rise of more than 5 per cent was on August 10, 2001, when the index increased by 5.5 per cent.

The southern market index rallied a total of 6 per cent in the last three days of last week to finish the week at 701.80 points.

On two consecutive trading sessions last Friday and Monday, the VN-Index reported the strongest single-day percentage increase in Asia, soaring 3.17 per cent and 4.98 per cent, respectively.

Vietnamese market sentiment was soothed as investors calmed down after the country reported no new COVID-19 cases on Sunday and Monday morning. But on Monday evening, four new infections were announced, pushing the country’s tally at 245, the health ministry said.

The country entered a 15-day nationwide social distancing campaign starting last Wednesday, not allowing gatherings of more than two people and asking people not to leave their homes to contain the spread of the pandemic. The step was taken citing a crucial two-week period in the nation’s COVID-19 fight.

The recent rally clearly shows increased market sentiment and some investors are looking forward to a stronger recovery.

Meanwhile, global equity markets also marched higher, encouraged by the expectations on a setback in cases of illness caused by the novel coronavirus.

New York, the US’ hardest-hit city, announced for the first time in a week that virus-related deaths in the state had dropped from the previous day, while the number of deaths in France and Italy also slowed.

In Vietnam, indices witnessed sharp increases right from the beginning of the session thanks to strong buying demand and improved liquidity.

More than 334.9 million shares were traded on the southern exchange, worth VND4.6 trillion (US$195.3 million).

Cash flow poured into pillar stocks, helping large-cap trackers the VN30-Index and HNX30-Index rise 5.16 per cent and 5.96 per cent, respectively.

Notable gainers on the HoSE were giant IT-real-estate-manufacturing-retail conglomerate Vingroup (VIC) (+6.9 per cent) and its real estate arm Vinhomes (VHM) (+6.9 per cent), Bank for Investment and Development of Vietnam (BID) (+7 per cent), Masan Group (MSN) (+6.9 per cent), Techcombank (TCB) (+6.9 per cent), insurer Bao Viet Holdings (BVH) (+7 per cent), construction conglomerate Cotec Construction JSC (CTD) (+6.9 per cent), Vietinbank (CTG) (+6.9 per cent).

On the Ha Noi Stock Exchange (HNX), pillar stocks like Asia Commercial Bank ACB (+7.9 per cent), Saigon Hanoi Bank (SHB) (+9.8 per cent), PetroVietnam Technical Services Corporation (PVS) (+9.7 per cent) and Vicostone (VCS) (+3.8 per cent) also recorded hefty gains, helping the HNX-Index recover over 5.5 per cent.

The HNX-Index on the HNX jumped 5.53 per cent to close Monday at 103.26 points.

Nearly 64.3 million shares were traded on the northern bourse, worth VND620.8 billion.

According to Bao Viet Securities Co (BVSC), the VN-Index is forecast to head toward resistance zone of 745-750 points in several sessions, where profit-taking and correction pressure is expected, and the market may possibly retest support zone of 700-720 points.

“Positive developments in containing the COVID-19 pandemic and the improvement of global stock markets are expected to support the market’s recovery,” BVSC said.

“Q1 2020 business results and macroeconomic statistics expectedly published in April may also place negative impacts on market movements. Profits of listed companies in Q1 may be below expectation under the influence of the COVID-19 pandemic,” the company said.

VNA

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