Vietnamese shares soared on January 25 as investors flocked to pour money into the HCM Stock Exchange (HOSE) after a two-day halt in operations following a technical crash.

 

The southern bourse operated as normal from 9am on January 25.

 

The benchmark VN-Index on the HCM Stock Exchange rose 1.58 percent to close at 1,104.57 points. It had gained 2.39 percent on January 22, the day the crash occurred, shutting down all trading activities on the exchange.

 

More than 508 million shares were traded on the southern exchanges, worth nearly 14.1 trillion VND (622.7 million USD).

 

These trading figures were up two-fold in both volume and value compared to the last trading session on January 22.

 

The minor HNX-Index on the Hanoi Stock Exchange added 0.29 percent to end at 126.62 points. The northern market index finished on January 24 down 0.05 percent.

 

Over 100 million shares were traded on the southern exchanges, worth nearly 1.7 trillion VND, up 60 percent in volume and 56 percent in value compared to the last trading session on January 24.

 

Across the two local exchanges, there were 213 gaining stocks, 292 declining ones and 67 stocks ending flat.

 

Large-cap stocks performed well as the VN30 Index, which tracks the performance of the 30 largest shares by market capitalisation, advanced 1.18 percent to 1,095.52 points with nearly two-thirds of the 30 stocks advancing.

 

The banking sector remained the major supporter for the market as 12 of 14 listed lenders advanced, of which JSC Bank for Investment and Development of Vietnam, listed as BID and Bank for Foreign Trade of Vietnam, as VCB, exceeded the maximum rate of 7 percent (the ceiling price) set out by the HOSE.

 

Other gainers, including Vietnam Joint Stock Commercial Bank for Industry and Trade (CTG), Vietnam Prosperity Joint Stock Commercial Bank (VPB), Military Commercial Joint Stock Bank (MBB), and HCM Development Joint Stock Commercial Bank (HDB), rose at least 3.8 percent.

 

Bank shares recorded an average growth of 1.71 percent, according to data on vietstock.vn on January 25.

 

The energy industry also posted strong growth on January 25 as the industry index inched up 1.14 percent. The industry was led by PetroVietnam Gas Joint Stock Corporation (GAS) and ThaiDuong Petrol Joint Sotck Company (TDG), hitting the ceiling prices.

 

Other growers were PetroVietNam Low Pressure Gas Distribution JSC (PGD) and CNG Vietnam Joint Stock Company (CNG), up 3.25 percent and 6.13 percent, respectively.

 

BIDV Securities JSC (BSC) said in its report that the market would continue to increase sharply in the coming sessions despite a slight correction in the afternoon session.

 

“Large cash flow from the market will be the main driver for the index to soar and cross the old peak,” it said in its daily report.

 

According to the Viet Dragon Securities Co (VDSC), the market seems to be overbought and correction may come soon. Thus, traders will consider taking profits and then cover stocks at lower prices. -VNA