Both stock indices surged on June 1 with more than 68 percent of codes posting gains on the two national stock exchanges as local investors rushed to buy bargain shares.
On the Ho Chi Minh Stock Exchange, the VN-Index rose 3.4 percent to close at 435.69 points, extending its winning streak to five days. The value of the day's trades climbed almost 50 percent to 580.86 billion VND (28.1 million USD) as almost 34 million shares changed hands.
Gainers outnumbered losers by 208-35, with 116 codes increasing by nearly 5 percent – the most they can in a single session – including Bao Viet Holdings (BVH), Vietinbank (CTG), Phu My Fertilisers (DPM), Masan Group (MSN) and Vincom Co (VIC).
Saigon Securities Inc (SSI) became the most-active share on the southern bourse, with 1.8 million traded. SSI also hit its ceiling at 17,200 VND (0.85 USD) per share.
"The market downtrend persisted for a long time, so it's time for a rebound," said Orient Securities Co analyst Nguyen Son.
Without supporting news, June 1's surge could have been driven by investor appetite for cheap shares, while the previous rising sessions were mainly attributable to the gains of large caps, Son said.
SJC Securities Inc general director Huynh Anh Tuan also suggested that the pressure on brokerage houses to sell shares held as collateral was still exerting force on the market, and his company had been urged by banks to stop lending against securities and recommended brokerages sell collateral shares to investors.
"Current monetary policy is still aimed at absorbing money back to banks." Tuan told the newspaper Dau tu chung khoan (Securities Investment). "The stock market is unlikely to go deeper, but a chance for a sustainable rebound is low due to the lack of support from a strong cash flow."
On the Hanoi Stock Exchange on June 1, the HNX-Index soared 3.24 percent to close at 71.73 points. The value of trades remained sluggish, however, reaching just 285.4 billion VND (13.8 million USD) on a volume of 28 million shares.
Gainers outnumbered losers by 244-66, with 60 percent of codes hitting their ceiling prices.
Coffee exporter Thai Hoa Vietnam Group (THV) was the most-active share nationwide with over 2.6 million traded. THV closed up 2.2 percent.
Foreign investors remained net buyers on both exchanges, picking up 2.4 million shares worth a combined 50.8 billion VND (2.5 million USD)./.