Market rallies on SBV's policy rate cuts

Monday, Apr 03, 2023 16:58

A worker moves electrical cables in a GELEX factory. GEX was among the stocks fuelling the market pickup on Monday. — Photo

The market rallied yesterday as the State Bank of Vietnam's (SBV) policy rate cuts sent positive vibes to investors.

On the Ho Chi Minh Stock Exchange (HoSE), the VN-Index started off the session with a fall, steady yet short-lived. It began to rise at around 1.30pm and eventually hit 1,079.28 points, up 14.64 points (1.38 per cent) against the previous session.

HoSE-listed advancers outnumbered decliners by 269 to 73, with 18 stocks hitting ceiling prices whereas two were at rock bottom. HoSE was busy with nearly VND13 trillion (US$553 million) worth of shares being traded.

"There are good prospects for the market in the short term as SBV has cut its policy rates to stimulate the economy," said an analyst.

The VN30-Index echoed the VN-Index pattern. It gained 15.04 points (1.40 per cent) to close at 1,088.72 points. In the basket, 24 stocks climbed, two stayed unchanged and four fell.

Vingroup (VIC) led the market rally with a gain of 5.45 per cent. Other stocks behind the bullish trend included Vietcombank (VCB), Vinhomes (VHM), Vietinbank (CTG), Techcombank (TCB), and Military Bank (MBB).

Electrical equipment was the sector on the front foot on Monday as it gained 4.07 per cent on the back of the bullish sentiment. In the sector, GELEX Group (GEX) rose by 6.05 per cent, followed by Vietnam Electric Cable (CAV) and SAM Holdings (SAM).

Real estate was the next sector lifiting indices as it saw lots of green on the screen. Major gainers included Vinhomes (VHM), Vingroup (VIC), and Vincom (VRE). Analysts believe SBV's policy rate cuts were the key factor behind the investors' optimism.

Upbeat investors also put their bullish bets on banking stocks on Monday as 18 out of 20 listed banks gained points. Notably, Vietcombank (VCB) rose by 1.53 per cent, Vietinbank by 2.57 per cent, and Techcombank (TCB) by 3.35 per cent.

The HNX-Index on the Ha Noi Stock Exchange (HNX) surged Monday, gaining 2.98 points (1.44 per cent) to end at 210.48 points.

Foreign investors withdrew their money from the market as they net-sold a total of around VND305.94 billion worth of shares on the two exchanges. Of which, they net sold VND312.1 billion on HoSE and net bought VND6.16 billion on HNX. — VNS

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