Investor confidence boosts stocks

Wednesday, Mar 02, 2016 08:14

The benchmark VN Index on the HCM Stock Exchange edged up 0.4 per cent to close at 561.56 points . — VNS Photo Gia Vi

HA NOI (Biz Hub) — Vietnamese shares rose on both local bourses yesterday as investor confidence improved after China cut its reserve requirement ratio to boost trading liquidity in the banking sector.

The benchmark VN Index on the HCM Stock Exchange edged up 0.4 per cent to close at 561.56 points and the HNX Index on the Ha Noi Stock Exchange gained 0.3 per cent to end at 78.96 points.

The indices rebounded from Monday's decline as investor confidence became more positive after the Chinese central bank reduced the amount of cash that banks must have as reserves to support the banking sector's liquidity, Maritime Securities Corporation (MSI) wrote in its daily report.

Higher investor confidence increased the value of large-cap stocks, such as software producer FPT Corporation (FPT), which added 0.8 per cent, HAGL Agricultural JSC (HNG), which gained 1.2 per cent, plant grower Hoang Anh Gia Lai JSC (HAG), which rose 2.4 per cent, and dairy firm Vinamilk (VNM), which increased 1.5 per cent.

Several stocks made gains on investor expectations that these companies will allow more foreign ownership.

Among those companies, Refrigeration Electrical Engineering Corporation (REE) surged 6.1 per cent after the firm yesterday announced it would increase foreign ownership by 5.3 per cent to 49 per cent.

Hoang Quan Consulting-Trading-Service Real Estate Corporation (HQC) added 1.8 per cent, extending its gains to 3.6 per cent after the company announced it would consider a raise in foreign ownership.

Local energy stocks also helped lift the markets after crude prices extended rallies yesterday.

US benchmark crude West Texas Intermediate (WTI) was up 1.3 per cent to trade at $34.20 a barrel. WTI has risen 15.4 per cent in the last eigtht trading sessions.

London-traded Brent crude added 0.8 per cent to trade at $36.87 a barrel, gaining 11 per cent in the last five trading days.

Among local energy stocks, PetroVietnam Gas Corporation (GAS) rose 2.1 per cent, PetroVietnam Drilling and Well Service Corporation (PVD) increased by 2.4 per cent, and PetroVietnam Coating Corporation (PVB) jumped 3.1 per cent.

Both local markets traded more than 190 million shares worth VND2.7 trillion (US$120.7 million), an increase of 6 per cent from Monday's trading value. — VNS

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