The VN-Index gained 3.53 percent to close at 497.90 on Tuesday, as the value of trades on the HCM City Stock Exchange edged back up to VND1.42 trillion (US$76.7 million), on a volume of 32.7 million shares.
Sacombank (STB) was the day’s most-active share, with a volume in excess of 1.82 million.
The State Bank’s announcement on Monday that it would leave the prime rate unchanged, as well as news of a successful sale of Government bonds overseas, was greeted enthusiastically by the market.
"Demand began returning on Monday but was burdened by concerns over the economic situation," said Nguyen Duy Tan, a broker with a Ha Noi-based securities firm, noting that the positive news later on Monday help spur the market yesterday.
Meanwhile, the successful bond issue helped confirm overseas interest in the country’s investment environment and consoled local investors worried about the economic picture, Tan said.
But he also noted the common trend of investors taking a breather in the run-up to Tet (Lunar new year) and said he expected the market to continue to be sluggish.
"When the excitement about today’s hot news is over, this behaviour will continue driving the market," he said. "We will see some ups and downs before the lunar holiday comes."
The Ha Noi market rebounded even more strongly, with the HNX-Index jumping by 5.17 percent to end the day’s trading at 165.46.