Higher gold prices and stable forex rates

Monday, May 19, 2014 15:48

Gold prices grow while the forex rate is stable the local market on May 19. —Photo vtv.vn

HA NOI (Biz Hub) — Gold prices rose slightly and forex rate was stable in Viet Nam in the beginning of the week on May 19.

Until 2.30 pm, one tael of the state-owned SJC gold price had inched up VND100,000 (US$4.7) and sold at VND36.65 million ($1,745) at the Saigon Jewellery Company. Meanwhile, the global gold trading floor, Kitco.com, also reported a higher gold price. The gold price was listed at $1,294.90 per ounce or $1,560.3 per tael, an increase of $2.6 per tael from last weekend.

Though the gold prices are higher, the Bao Tin Minh Chau Jewellery and Gemstone Company (BTMC) continues to record a higher number of buying transactions for gold in its northern branches, adding that buying/selling rate was 6 over 4.

Each tael of gold in Viet Nam was $185 higher than in the world market on May 19.

Also, on Monday, the dollar price at commercial banks was listed lower between VND20 and VND30 compared with its hike last week when the commercial banks kept raising the dollar's selling value between VND40 and VND50.

The central bank kept its exchange rate of VND21,036 for US$1 unchanged in the last 10 months and announced its commitment to closely monitor and showed its willingness to take necessary measures to maintain market stable last week.

The afternoon rate of Vietcombank on May 19 was VND21,090–21,150 per dollar for buying and selling, respectively. The rates in other commercials banks were also lower. The selling and buying rates were VND21,110 and VND21,160 for $1, respectively, in the Bank for Investment and Development of Viet Nam; VND21,110 and VND21,170, respectively, in Asia Commercial Bank; and VND21,095 and VND21,155, respectively, in VietinBank.

Despite the recent loss caused by Vietnam–China tension, the Vietnamese stock market still attracted foreign investors with large amount of net purchases last week.

According to local newspaper, two Exchange-Traded Funds of FTSE Vietnam and Market Vector Vietnam attracted nearly US$21 million last week. This could explain the net purchases of over VND1.87 trillion ($89 million) from the foreign investors in the last week.

Vietcombank Securities estimated the net purchases last week of foreign investors was equivalent to their net purchase power in the whole Q1 of 2014, adding that Viet Nam is still the ideal market, especially when good stocks were being oversold by the local investors.

Meanwhile, Samir Shah, an investment manager at Advance Emerging Capital in London, which oversees about $750 million, told Bloomberg News that their view of the outlook for Viet Nam remained bullish, adding that "steady economic progress looks set to continue." —VNS

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