VN shares end three-day decline

Vietnamese shares rose on both local markets yesterday, snapping a three-day decline, led by large-cap stocks.

The benchmark VN Index on the HCM Stock Exchange rose 1.2 per cent to close at 564.26 points. The southern index dropped 2.9 per cent in the previous three sessions.

The HNX Index on the Ha Noi Stock Exchange gained 0.7 per cent to end at 76.65 points. The northern index lost 3.3 per cent in the previous three days.

The gains yesterday were sparked by investor expectations that the recent drop in large-cap stocks had made them attractively cheap, Sai Gon - Ha Noi Securities Corporation (SHS) wrote in a report.

Those large-cap stocks included dairy firm Vinamilk (VNM), which gained 1.7 per cent after dropping 4 per cent the previous three sessions and software producer FPT Corporation (FPT), which added 2.2 per cent after slumping 4.2 per cent, and food and beverage producer Masan Group (MSN), which was up 0.7 per cent after losing 1.9 per cent in the two previous days.

Financial firms yesterday made big gains, with the banking sector index up 1.4 per cent, the insurance sector index rising 2.7 per cent and the brokerage sector index jumping 3.4 per cent after the Vietnamese dong strengthened on the inter-bank market. Banks yesterday traded the dollar at around VND22,430, a decrease of VND40 from Monday.

Rising financial stocks included Saigon Securities Incorporate (SSI), which jumped 4 per cent, HCM City Securities Corporation (HCM), which surged 6.4 per cent, Vietcombank (VCB), which gained 1.9 per cent, and insurer Bao Viet Holdings (BVH), which added 2 per cent.

On the opposite side, energy stocks continued to be pressured downward by lower crude prices. The US benchmark crude West Texas Intermediate (WTI) extended its fall by 1.5 per cent to trade at US$30.93 a barrel. WTI has dropped 16.5 per cent since the end of last year.

Both local exchanges traded more than 166 million shares worth VND2 trillion ($90.2 million), a slight increase from Monday's trading value.

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