Stocks rebounded on both national stock exchanges yesterday as investors began hunting shares at bargain prices following last week's slump.
On the HCM City Stock Exchange, the VN-Index rose 2.66 per cent to close at 464.76. Ninety-four per cent of codes posted gains on the day, with 120 codes closing at their ceiling prices.
Blue chips led the market rebound, with the eight leading shares by capitalisation all rising, including Hoang Anh Gia Lai Company (HAG), Masan Group (MSN), Vietcombank (VCB), Sacombank (STB), Eximbank (EIB), Vietinbank (CTG), Vinamilk (VNM) and Saigon Securities Inc (SSI).
SSI, the most-active share on a volume of nearly 1.7 million, gained 4.95 per cent to end the session at VND29,700 (US$1.55) per share.
Overall market volume fell 12 per cent from Friday's session, however, to 40.4 million shares, while the value of trades declined 18 per cent to VND1.1 trillion ($57.8 million).
On the Ha Noi Stock Exchange, the HNX-Index gained a whopping 3.8 per cent over last Friday's close to end the day at 140.11 points. Trading volume also increased by 11.7 per cent, reaching nearly 34.6 million shares, worth a total of VND835.4 billion ($43.5 million).
Advancers outnumbered decliners by 303-10, and Kim Long Securities Company (KLS) became the most heavily-traded share with nearly 4.3 million changing hands. KLS closed up 5.37 per cent to VND15,100 ($0.79).
A strong market rebound was unexpected of Viet Nam in Monday's trades as many market insiders had predicted that the State Bank of Viet Nam's refusal to give commercial banks additional time to comply with stricter capital adequacy requirements would depress investor sentiment.
According to a brief survey by Securities Investment yesterday morning, only three financial analysts out of 12 responding had expected a market increase while another seven expected the market to continue its downward slide. (The other two were unsure.)
But Au Viet Securities Company analyst Chu Hong Nhung said market slumps last week had made share prices attractive, attracting bottom-catching investors.
"However, many investors also hesitate to sell at cheap prices and are waiting for a stronger recovery, keeping market volumes and values at an average level," Nhung said.
She warned that a sell-off could ensue if shares continued to increase for a few more sessions.
"The market can drop again if investors sell shares to realise short-term profits," Nhung said.
Foreign investors remained wary, picking up a net buy of just VND8 billion ($417,000) on the HCM City stock market yesterday, while offloading shares worth a net of VND1 billion ($53,000) on the Ha Noi market.