Shares rally on investors excitement over fees cut

Saturday, May 09, 2020 06:54

Customers make transactions at a branch of Techcombank in Ha Noi. Shares of Techcombank (TCB) hit the daily limit rise of 7 per cent on Friday.— Photo courtesy of Techcombank

Shares climbed in on Friday after the Finance Ministry's announcement it was cutting fees for most securities services by half.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange exceeded the 800-point landmark, climbing 2.16 per cent to close the session at 813.73 points.

The index had climbed 1.78 per cent to close Thursday at 796.54 points.

More than 371.3 million shares were traded on the southern exchange for VND7 trillion (US$299.4 million).

Market breadth was positive as gainers outnumbered decliners by 228 to 140.

On Thursday, the Ministry of Finance issued Circular No 37/2020 stipulating securities fees to support businesses hit hard by the COVID-19 pandemic.

From now till the end of the year, 20 of 22 securities fees are subject to a 50 per cent reduction.

From January 1, 2021 onwards, all charges and fees will return to normal levels.

With the complex movements of the pandemic and its impact on the economy and the securities sector, the Ministry of Finance has taken measures to support the market.

Previously, the Ministry of Finance issued Circular No 14/2020 on March 18 to cut and exempt 15 different securities charges, including 10 per cent to 50 per cent reductions on nine services and exemptions for six services.

Of the 25 sectors, 17 gained ground on Friday thanks to strong buying demand. Retail, wholesale, insurance, real estate, food and beverage, agriculture, information and technology, oil and gas and securities were among gainers.

The sector's indices gained between 0.2 per cent and 2.9 per cent, according to

Health care, logistics, construction, construction materials and rubber production lost ground.

Banking stocks performed well with Techcombank (TCB), Vietcombank (VCB), Bank for Investment and Development (BID), Military Bank (MBB), Vietinbank (CTG) and VPBank (VPB) all rallying.

Petroleum stocks also advanced, including Petro Vietnam Gas JSC (GAS), PetroVietnam Technical Services Corporation (PVS), Viet Nam National Petroleum Stock (PLX) and PetroVietnam Drilling and Well Services Co (PVD).

The VN30-Index, which tracks the performance of the 30 largest stocks by market capitalisation and liquidity on HoSE, increased 2.73 per cent to close at 760.15 points.

According to Bao Viet Securities Co (BVSC), the VN-Index is forecast to face correction pressure early next week before rebounding by the end of the week.

“After penetrating the previous peak at 795-800 points, the VN-Index may possibly experience a throwback to this area. If successfully retesting this support, the index may be able to expand its recovery toward 845-860 points in the short term,” BVSC said.

On the Ha Noi Stock Exchange, the HNX-Index rose 1.58 per cent to end Friday at 110.02 points.

More than 65.5 million shares were traded on the northern bourse for VND566 billion.

The northern market index had risen 1.55 per cent to end Thursday at 108.31 points. — VNS

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