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imageHANOI: Vietnam's benchmark VN Index jumped 1.27 percent at the break on Wednesday, extended a rally in the previous session that analysts said was a technical rebound after steep falls.

All blue chips advanced, along with around half of the stocks on the exchange, led by PetroVietNam Gas, Vietnam's top firm by market value, which rose 1.92 percent.

Shares in Saigon Securities Incorp, the top brokerage by market share, increased 2.7 percent, on track for its second straight gain.

The firm will give shareholders one new share for every 10 stocks owned as dividend payment, it said in a statement on Wednesday. (ssi.com.vn)

The rally followed a central bank's announcement on Tuesday on lowering the ceilings on dollar and dong deposits, a move that the market has expected and which could reduce loan rates and boost economic growth.

"The gains are quite good but not really convincing as liquidity is rather low," said analyst Tran Minh Hoang of Vietcombank Securities.

"The selling side has lessened activities. We don't know what would happen if they decided to sell further," Hoang said.

Volume at the break on Wednesday stood at 47 million shares, more than halved from the full day level of 117 million shares on Tuesday, Reuters data showed.

Here is a snapshot of the VN Index at midday (0431 GMT).

Copyright Reuters, 2014

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