Investor confidence lifts local shares after US Fed statement

Thursday, Mar 31, 2016 08:16

Investors at SSI's exchange floor. Higher investor confidence yesterday lifted the VN Index after the US central bank showed cautiousness in its rate hike plan. — VNS Photo Doan Tung

HA NOI (Biz Hub) — Vietnamese shares were mixed on local markets yesterday as investor confidence rose after the US central bank's latest statement on its policy tightening plan.

The benchmark VN Index on the HCM Stock Exchange rebounded 0.3 per cent to close at 569.91 points, while the HNX Index on the Ha Noi Stock Exchange dropped 0.4 per cent to decline by 1.2 per cent in the last two sessions.

Investor confidence improved, along with gains on global stock markets after the US central bank announced it will take careful measures in raising its interest rates due to the slowdown of the world's economy, Bao Viet Securities Corporation (BVSC) wrote in its daily report.

The improved investor confidence helped boost local large-cap financial stocks, including banks and brokerage firms.

In the banking sector, Vietcombank (VCB) inched up 0.2 per cent, Vietinbank (CTG) rose 0.6 per cent and Sacombank (STB) added 2 per cent.

Among brokerage companies, Sai Gon Securities Incorporation (SSI) was up 1 per cent, Bao Viet Securities Corporation (BVS) advanced 2 per cent and Sai Gon-Ha Noi Securities Corporation (SHS) rose 1.5 per cent.

Following the US central bank's message, the US dollar got weaker against other currencies, including the Vietnamese dong. Yesterday, Viet Nam's central bank sent its reference mid-point rate for exchange trading bands by VND11 to VND21,878 per dollar. The mid-point rate has fallen VND13 since Monday on expectations that the US central bank will make rate hikes at a slower pace this year.

Additionally, crude rebounded from a four-day slump as the US dollar weakened on the global exchanges.

The US benchmark crude West Texas Intermediate (WTI) rose 1.7 per cent to trade at US$38.91 a barrel, and London-traded Brent crude added 1.4 per cent to trade at $39.68 a barrel.

US crude fell 7.6 per cent during the previous four trading days and Brent dropped 6.3 per cent.

The gains in global oil prices picked up energy stocks such as PetroVietnam Coating Corporation (PVB), PetroVietnam Drilling and Well Service Corporation (PVD) and PetroVietnam Technical Service Corporation (PVS), which rose 0.4 per cent and 0.6 per cent.

Other big stocks such as dairy firm Vinamilk (VNM), confectionery producer KIDO Group (KDC), and plastic and rubber company Tien Phong Plastic JSC (NTP) also helped raise the markets.

VNM added 1.5 per cent. KDC was up 1.3 per cent and NTP gained 2.1 per cent.

On the opposite side, other stocks declined and held markets back. Among them, Hung Vuong Corporation (HVG) dropped 0.9 per cent, insurer Bao Viet Holdings (BVH) fell 1 per cent, BIDV Insurance Corporation (BIC) lost 1.8 per cent and the Asia Commercial Bank (ACB) slumped 4.3 per cent.

Both local markets yesterday traded more than 136.4 million shares worth VND2.76 trillion ($122.8 million), a decrease of 13.5 per cent from Tuesday's trading value. — VNS

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