Vietnam Shares Advance on Better-than-Expected GDP Growth

A seven-year high GDP growth rate this year has helped lift investor sentiment and stirred hopes for solid earnings.

Vietnam Shares Advance on Better-than-Expected GDP Growth

Vietnamese shares continued its winning streak on Dec. 27. Photo: Internet

The benchmark VN Index of the Hochiminh Stock Exchange (HOSE) closed 0.26% up at 968.46 on Wednesday as investors confidently bought shares after the government released better-than-expected GDP growth rate for this year.

Vietnam’s GDP growth ended up 2017 at 6.81%, higher than the government’s initial target of 6.7%, official data shows. 

Investor sentiment was firm in morning trade, buoyed by gains banking and oil shares after crude oil prices hit a two-and-a-half high on December 26. However, profit taking weighed on early afternoon trade, but the index managed to end in positive territory thanks to a number of large-cap stocks.

Volume was heavier with 235.82 million shares worth 5.91 trillion dong ($260.3 million) trade, compared to 186 million shares valued at 5.25 trillion dong on Tuesday.

Foreign players net bought 282 billion dong on the HOSE, mainly in HPG, VIC, VJC, MSN, and VNM.

“Technically, strong and widespread inflows helped the markets continue to advance and approach the resistance level of 970, with bluechips and large-cap stocks taking the leadership,” said MB Securities (MBS) in a note.

The VN Index is likely to test the next resistance territory of 970-975 on Thursday, MBS analysts said, advising investors to hold on shares.

“Although the market outlook remains bullish in the medium term, we expect the markets to move sideways and consolidate with differentiation among shares as investors enter a holiday season,” said Bao Viet Securities in a note sent to its clients. 

Tuan Minh / BizLIVE

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