Vietnam’s benchmark stock index climbed the most since October, rebounding in late trading after recent declines dragged valuations to their lowest level in more than three months.
The benchmark VN-Index rose 1.9 percent to 574.15 at the close on Tuesday, reversing a loss in the final hour of trading. It was the only gauge in Asia to gain. JSC Bank for Foreign Trade of Vietnam, known as Vietcombank, climbed 5.6 percent, the most since July 22, while Vietnam Dairy Products JSC increased 4.2 percent.
The gauge slumped 1.4 percent yesterday, falling for a third day and dragging its valuation to 12.3 times projected 12-month earnings, the lowest level since August 27. The index’s 14-day relative-strength index fell to 26.5 yesterday, below the level of 30 some investors consider a signal that an asset is poised to rebound.
“The market is oversold at the 575 level and smart money is stepping back in to buy,” said Patrick Mitchell, Ho Chi Minh City-based director of institutional marketing at Maybank Kim Eng Securities. “The end-of-day rally can be seen as a technical rebound as many financial stocks have fallen into oversold territory.”
Most banks gained. Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) rose 3.6 percent, the largest increase since October 16. Bank for Investment & Development of Vietnam (BIDV) also advanced the most in two months, while Vietnam Joint Stock Commercial Bank for Industry & Trade (Vietinbank) gained 2.8 percent, the biggest advance since September 18.