Shares gain on PM’s new decision on national exchange establishment

Monday, Dec 28, 2020 18:30

A branch of insurance company Bao Viet Holdings in Ha Noi. Shares of Bao Viet Holdings (BVH) rose 3.4 per cent on Monday. — Photo courtesy of BVH

A gauge of Vietnamese stocks climbed on Monday following encouraging news about the Prime Minister’s new decision on the establishment of the national stock exchange.

Prime Minister Nguyen Xuan Phuc issued Decision 37/2020/QD-TTg on the establishment of the Viet Nam Stock Exchange (VSE), with the aim of unifying the stock market and ensuring efficient, fair, open and transparent activities.

The VSE, having chartered capital of VND3 trillion (US$130.2 million), will be headquartered in Ha Noi and operate as a one-member limited liability company wholly owned by the State. The Ministry of Finance will be the representative of State capital.

The Ha Noi Stock Exchange (HNX) and the Ho Chi Minh Stock Exchange (HoSE) will become its subsidiaries, with 100 per cent of capital invested by the VSE, but will both operate independently.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange gained 0.64 per cent to end Monday's session at 1,091.33 points.

The index had gained 1.59 per cent last week.

Nearly 723.9 million shares were traded on the southern bourse on Monday, worth VND14.6 trillion.

The large-cap tracker VN30-Index was up 0.20 per cent to 1,054.23 points.

Fourteen of the 30 large-cap stocks in the VN30 basket increased while 13 declined.

“VN-Index continued its rally for most of the session and is now back over 1,090 points,” said BIDV Securities Co.

“Foreign investors were net sellers on both HoSE and HNX. Besides, market breadth was positive and liquidity increased compared to the previous session.

“According to our assessment, the VN-Index may still move towards the threshold of 1,100 points in the coming sessions,” it said.

Foreigners net sold VND348.21 billion on HoSE, including Hoa Phat Group (HPG) with VND85 billion, Military Bank (MBB) with VND64.7 billion and Vincom Retail (VRE) with VND60.1 billion. They were net sellers on the HNX with a value of VND25.1 billion.

Nineteen out of 25 sector indices on the stock market gained ground, including logistics, wholesale, real estate, IT, energy, securities, healthcare, construction materials, insurance, banking and rubber production

On the opposite side, losers were food and beverage, seafood processing, retail and construction.

A number of blue-chips attracted cash flow such as insurer Bao Viet Holdings (BVH), steel maker Hoa Phat Group (HPG), Vietnam National Petroleum Group (PLX), Phu Nhuan Jewelry (PNJ) and Vinhomes (VHM).

On the Ha Noi Stock Exchange, the HNX-Index climbed 2.14 per cent to 196.57 points.

Nearly 165.4 million shares were traded on the northern market, worth VND2.3 trillion. — VNS

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