Shares recovered on Wednesday, propped up by major blue chips with strong first-half earnings.

 

On the Hồ Chí Minh Stock Exchange, the VN-Index increased 0.57 per cent to 991.66 points.

 

On the Hà Nội Stock Exchange, the HNX-Index closed flat at 104.43 points.

 

Both stock indices tumbled on Tuesday.

 

A total of 209.6 million shares worth VNĐ5.42 trillion (US$232.6 million) were traded in the two markets, up 36 per cent in volume and 48 per cent in value compared to Tuesday’s figures.

 

Overall market condition was negative when the number of losing stocks outnumbered the gaining ones by 256-224 and 287 remained unchanged.

 

The market was led by several heavyweight stocks, including Vincom Retail (VRE), Vinhomes (VHM), Mobile World Investment Corp (MWG), FPT Corp (FPT) and steelmaker Hòa Phát Group (HPG). Except Hòa Phát Group, other companies reported positive business results in the first half of this year.

 

Vinhomes and Vincom Retail climbed 5 per cent and 3 per cent, respectively.

 

On Tuesday, Vinhomes posted revenues of nearly VNĐ26.8 trillion and pre-tax profit of more than VNĐ13.4 trillion in the first six months, up 72 per cent and 34.5 per cent year-on-year, respectively.

 

Meanwhile, Vincom Retail’s revenue and pre-tax profit more than doubled last year, with revenue rising from VNĐ750 billion in 2018’s six months to nearly VNĐ1.7 trillion this year, and profit jumping from VNĐ1 trillion to VNĐ2.4 trillion.

 

However, shares of their parent company Vingroup (VIC) edged down 0.4 per cent despite the company posting record revenue and profit in the second quarter. Vingroup reported consolidated revenues of VNĐ39.46 trillion and pre-tax profit of nearly VNĐ4.9 trillion, up 22 per cent and 38 per cent year-on-year, respectively.

 

Among other gainers, Hòa Phát Group increased nearly 5 per cent; Mobile World Investment gained nearly 3 per cent; and IT giant FPT Corp (FPT) rose 1.3 per cent.

 

Hòa Phát Group’s revenues still grew 11 per cent to VNĐ30.3 trillion in the first half but its net profit decreased 12.8 per cent to VNĐ3.9 trillion.

 

Meanwhile, revenues and profit after tax of Mobile World Investment rose 16 per cent and 38 per cent, respectively to VNĐ51.7 trillion and VNĐ2.1 trillion. FPT Corp’s revenues and pre-tax profit climbed more than 20 per cent to VNĐ12.5 trillion and VNĐ2.1 trillion, respectively.

 

According to Viet Dragon Securities Co, the market would fluctuate around a strong resistance level of 1,000 points. Short-term risks are increasing due to the cautious psychology of most investors.

 

“However, the market may soon recover and stocks will continue to diversify based on second-quarter earnings results,” Khải Trần, a stock analyst at Viet Dragon Securities Co wrote in a report.

 

Foreign investors were net buyers on the two exchanges but with a modest value of more than VNĐ17 billion on Wednesday. — VNS