Phuong Thao
The VN-Index ended the day at 486.22, rising 3.4 points, or 0.7%, against the previous session. Liquidity on the southern bourse remained strong with 80.6 million shares worth around VND1 trillion changing hands.
Viet Capital Securities Company said that the rally of the real estate tickers was related to a proposal a few days ago by the Ministry of Construction that would open the door much wider for foreigners to own properties in Vietnam.
Such is complemented by technical reasons that real estate tickers have by far been the worst performers this year, with some having lost as much as 30% year-to-date such as DIG, IJC, NTL or ITC. Many stocks are now trading much below or close to the par value, it said.
In addition, as the U.S. Federal Reserve surprisingly decided not to scale down its bond-buying program known as quantitative easing (QE) late last week, there have been fresh hopes by local investors of a halt in foreign money outflows by the exchange traded funds (ETFs), which started in early June.
“We saw the Van Eck Vietnam ETF shares have now been trading at slight premiums after three months continually in discount. Before such trend reversal, market data showed us that daily trading by local investors had plunged by half compared to before the QE concern emerged,” the broker commented.
The Hanoi market also advanced on Wednesday with turnover rising to nearly VND279 billion. The HNX-Index rose 0.45 point, or 0.75%, against the previous day to close at 60.26.
Vietcombank Securities Company (VCBS) said that the gaining momentum sprang from high demand of local investors with expectations of optimistic third quarter’s business results of some enterprises, especially leading ones.
“We think that, the expectation would be maintained until the release of official announcements from the enterprises, which could lead to intensive buying into several good stocks. The market, accordingly, would remain in the green zone,” VCBS predicted.
“Besides, the nation’s gross domestic product (GDP) growth rate in the first nine months at 5.14% year-on-year could be perceived as positive news, showing gradual recovery of the economy and raising expectation about further economic recovery in the last quarter. A stronger economy, in our view, would set stage for a better script for stock market in the coming time,” the broker added.
Đăng ký: VietNam News