Southern index shows major rally

Shares rallied in HCM City Monday and the VN-Index added 3 per cent to 505.81 points. Analysts for the financial information website said it was the highest increase in more than two years. Gainers outnumbered losers by 170-51.

The market value on the HCM City Stock Exchange reached almost VND1.2 trillion (US$ 57.1 million) as over 55.4 million shares changed hands.

Blue chips led the rise with the VN30, which tracks the performance of 30 leading shares in capitalization and liquidity, advancing 2.66 per cent to 566.98 points.

Only logistic company Gemadept (GMD) and food processor Bourbon Tay Ninh (SBT) retreated. Meanwhile, insurer Bao Viet (BVH), Da Nang Rubber (DRC) and steelmaker Hoa Phat (HPG) hit the daily increase limit of 7 per cent.

The recovery in the northern bourse also helped stocks on the Ha Noi Stock Exchange. Overall, the HNX-Index rose nearly 2.1 per cent to 61.51 points.

However, trading was sluggish as shares tumbled during most of the session. Trading value and volume fetched VND322.2 billion ($ 15.3 million) and 42.3 million units, respectively. The HNX30, representing the top 30 shares, also put on 3.3 per cent to 117.87 points.

"A lot of shares on the northern bourse have reached their support levels; we can hope for a rally during the trading of this week," said ACB Securities Co analyst Cao Tan Phat.