VN Index up for fifth consecutive day

Thursday, Feb 25, 2016 08:07

Customers conduct transactions at the Bank for Investment and Development of Viet Nam in Ha Noi. The banking sector contributed to market gains yesterday. — Photo BIDV

HA NOI (Biz Hub) — Vietnamese shares yesterday made gains on both local markets, led by banks.

The benchmark VN Index on the HCM Stock Exchange rose 1.2 per cent to close at 568.04 points, extending its rally of 3.8 per cent over the last five trading sessions.

On the Ha Noi Stock Exchange, the HNX Index rebounded 0.9 per cent from Tuesday's slight fall to close at 78.89 points.

The banking sector index added 4.1 per cent on expectations that Viet Nam's central bank may raise the loan-to-deposit ratio (LDR) in joint-stock commercial banks to 90 per cent from 80 per cent, local media reported yesterday.

The plan is expected to help banks use their deposit holdings to provide more loans for the market, HCM Securities Corporation (HSC) wrote in a report.

Banks that made the biggest gains included the Bank for Investment and Development of Viet Nam (BID), Vietinbank (CTG) and Vietcombank (VCB), which surged 6.5 per cent, 6.4 per cent and 3.2 per cent, respectively.

Other banks that may also benefit from the new plan were Sacombank (STB), which rose 2.8 per cent, and Asia Commercial Bank (ACB), which jumped 4.2 per cent.

Other financial firms, insurers and brokerages also made good gains, led by BIDV Insurance Corporation (BIC), which surged 6.8 per cent to extend a 39 per cent rally in the last five sessions after the company last week said it would allow a higher amount of foreign ownership.

Other gainers among insurance and brokerage stocks were Bao Minh Insurance Corporation (BMI), which rose 2.9 per cent, Bao Viet Holdings (BVH), up 1.9 per cent, HCM City Securities Corporation (HCM) which surged 6.7 per cent, Saigon Securities Incorporate (SSI) which increased by 1.8 per cent and VNDirect Securities Corporation (VND) which gained 2.6 per cent.

Meanwhile, the energy sector index fell 0.5 per cent as global oil prices continued to decline after Saudi Arabia denied that it plans to cut production in an attempt to boost prices.

US benchmark crude West Texas Intermediate (WTI) yesterday dropped 3 per cent to trade at US$30.92 a barrel and London-traded Brent crude fell 2 per cent to trade at $32.62 a barrel.

Both local markets traded nearly 214 million shares worth VND3 trillion ($134 million), a slight increase from Tuesday's trading value and up from last year's daily average of about $111 million. — VNS

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