VN shares buoyed by Fed hike

Friday, Mar 17, 2017 08:38

Investors watch share prices on computers at MB Securities Co. Shares advanced on Thursday despite the Fed’s decision to hike interest rates. — VNS Photo Truong Vi

Shares edged up on Thursday on the two national exchanges even though the US Federal Reserve on Wednesday hiked the benchmark interest rate for the second time in three months. Property, securities and agricultural stocks were the market momentum.

On the HCM Stock Exchange, the VN-Index increased by 0.25 per cent to 714.92 points.

On the Ha Noi Stock Exchange, the HNX-Index was up 0.59 per cent at 87.97 points.

Liquidity soared on Thursday with a total of 234.4 million shares worth VND4.74 trillion (nearly US$208 million) traded in the two markets, up 31.7 per cent in volume and 21.5 per cent in value compard to Wednesday’s levels.

According to market analysts, the Fed’s decision was foreseen and was not expected to shake up markets. Large-cap stocks rose strongly as 22 of the 30 largest by market value and liquidity in HCM City gained, and only five declined.

Agribusiness Hoang Anh Gia Lai Co (HAG) and Hoang Anh Gia Lai Agricultural Invesment (HNG) hit the daily maximum rise of 7 per cent.

Property stocks were still the magnet and maintained their growth.

On the HCM City’s bourse, big firms like VinGroup (VIC), HCM City Infrastructure Investment (ITA), Kinh Bac City Development (KBC), Dat Xanh Real Estate Service & Construction (DXG), Hoang Quan Real Estate Trading Consulting Service (HQC) and Khang Dien Investment and Trading House (KDC) advanced by 1-4 per cent.

Tasco (HUT) on the Ha Noi exchange climbed 10 per cent.

All of them were the most heavily-traded stocks in the two markets.

Securities stocks emerged on Thursday as popular stickers. Saigon Securities Inc (SSI) and Sai Gon-Ha Noi Securities Co (SHS) experienced high trading liquidty. SHS rose 8.5 per cent while SSI was up 4.7 per cent.

On the negative side, shares of Novaland Investment (NVL) lost 1 per cent in value despite strong foreign buys. (Foreign investors bought a net value of VND230.6 billion for NVL shares yesterday). Meanwhile, FLC Faros Construction (ROS) tumbled 3.2 per cent.

The market could experience an unexpected slump following its strong performance, stock analysts at Vietnam Investment Securities Co warned, saying the VN-Index was being influenced by large-cap stocks.

The VN-Index rose for two sessions and sank in two this week.

“However, the most important thing is the high trading value, which showed that investors are staying in the market,” they said, predicting money inflows could shift to blue chips when average prices of low-priced stocks has gone up significantly. — VNS

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