Shares start new year on a positive note

Tuesday, Jan 05, 2021 08:13

Minister of Finance Dinh Tien Dung beats the gong to start the first trading session of Viet Nam’s stock market in 2021 on January 4. — VNA/VNS Photo

Vietnamese markets started the first session of this year on a positive note, with the three major indices notching solid yearly gains despite an economy ravaged by COVID-19 as investors looked to a post-pandemic world.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange gained 1.5 per cent to end Monday session at 1,120.47 points.

By the end of 2020, the VN-Index had increased by 142.88 points, equivalent to 14.87 per cent compared to the end of 2019. The minor HNX-Index had gained 98.1 per cent, UPCoM-Index 31.6 per cent.

On Monday, more than 764 million shares were traded on the southern bourse, worth VND16.2 trillion (US$703 million).

Market breadth was positive with 380 gainers and 75 decliners.

The large-cap tracker VN30-Index was up 1.97 per cent to 1,091.87 points.

Twenty-six of the 30 large-cap stocks in the VN30 basket increased while two declined.

“The VN-Index increased gradually from the beginning of the morning session to the end of the afternoon session and closed the first session of 2021 at around 1,120,” said BIDV Securities Co.

“Foreign investors turned to be net sellers on both HoSE and HNX. In addition, market breadth was in a positive status and liquidity increased compared to the previous session.

“According to our assessment, VN-Index will aim to reach 1,130 in the next few sessions,” the company said.

On the Ha Noi Stock Exchange, the HNX-Index climbed 1.56 per cent to end Monday at 206.28 points.

Nearly 119 million shares were traded on the northern market, worth VND1.7 trillion.

First session of the year

“The Viet Nam stock market is anticipated to develop in both scale and quality of operation this year, affirming its role as an effective capital mobilising channel for the local economy,” said Minister of Finance Dinh Tien Dung.

Dung made the statement during a gong-beating ceremony, held by the State Securities Commission and the Ha Noi Stock Exchange on January 4, to mark the opening of the first trading session of 2021.

During the ceremony, the minister said that 2021 can be considered an important year for national politics due to the organisation of the upcoming 13th National Party Congress expected to provide a solid foundation for the local economy and the stock market this year.

The amendment of the Investment Law and Enterprise Law, especially the official enforcement of the Law on Securities, is anticipated to create a new legal foundation to enhance competitiveness, improve transparency, and the operational efficiency of stakeholders towards the sustainable development of the Vietnamese stock market.

With regard to key objectives ahead throughout the year, Minister Dung requested that the State Securities Commission and relevant units continue to fine-tune the legal system for the securities market, speed up the restructuring of the securities and insurance markets, whilst also accelerating the equitisation process of State-owned enterprises.

This should be done alongside increasing market size and liquidity, and introducing new products in transactions over the course of 2021, he said. — VNS

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