At the trading session on June 5, most key shares in the stock market saw prices continue to increase sharply, thus raising the VN Index increase by 10 points and exceeding the 1,100-point threshold for the first time in the last six months. 

At 10.20 am, the VN Index increased by 10.22 points to 1,100 points. Last week, the indicator surpassed MA200, or 200 day moving average, considered a key indicator by traders for determining overall long-term market trends.

A lot of shares saw prices increase sharply on June 5, including Vingroup (VIC) and Vinhomes (VHM) owned by dollar billionaire Pham Nhat Vuong, and Masan (MSN) owned by Nguyen Dang Quang, Vinamilk (VNM) by Mai Kieu Lien and Sabeco.

The VIC price, for example, increased by VND300 per share to VND52,300; Hoa Phat Group (HPG) to VND21,900 (+ VND300); VIetcombank to VND98,300 (+ VND3,400), and VietinBank (CTG) to VND28,950 (+ VND300).

Vietcombank’s shares have become more expensive after the bank announced the plan to pay dividends of 18 percent and increase capital to over VND55 trillion. When the plan is completed, the bank will be the biggest among the ‘big four’.

Vietcombank’s board of directors approved a plan to increase charter capital via share issuance based on a plan approved by the 2022 shareholders’ meeting.

Prior to that, at the 2023 annual shareholders’ meeting convened on April 21, the bank said that it was choosing foreign shareholders for its privately issued share plan.

Meanwhile, Bloomberg and Reuters reported that Vietcombank will sell 5 percent of shares, approve a privately issued share plan, and mobilize at least $600 million worth of capital.

In the market, the uptrend of real estate shares slowed down in the first trading session of the week on June 5 after two weeks of sharp rise. However, real estate shares are still attracting cash flow. 

Analysts said that the cash would flow to the stock market, especially to the stocks which decreased sharply last year such as real estate, finance and building materials, when a series of commercial banks have adjusted their deposit and lending interest rates following the central bank’s move of slashing operating interest rates.

Reviewing the last week’s performance, analysts pointed out that the return of bank shares helped the VN Index perform well.

Interest rate reductions have had positive impacts on the stock market. From May 29 to June 2, the market liquidity saw impressive improvement with the average trading value on three trading floors surging by 27.2 percent compared with the week before to VND18.509 trillion per session.

Manh Ha