Vietnamese shares advanced on Thursday morning as investors reacted to the Fed’s future plan to lower its interest rates.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange rose 0.89 per cent to close at 958.12 points.

The VN-Index was up 0.60 per cent on Wednesday.

More than 94.2 million shares were traded on the southern bourse, worth VND2 trillion (US$86 million).

Local stocks followed the upward trend of global markets as investors were upbeat after Fed officials late Wednesday said they supported future rate cuts.

Rate cuts by the US central bank Fed are expected to boost the global economy after it has been rocked by the US-China trade war.

Large-cap stocks were the driving force of the Vietnamese stock market in the morning.

The large-cap VN30-Index increased by 1 per cent to end at 862.87 points.

Twenty-four of the 30 largest stocks by market value and trading liquidity in the large-cap group advanced.

Among the gainers were Techcombank (TCB), Phu Nhuan Jewellery JSC (PNJ), Mobile World Investment Corp (MWG), Vietjet (VJC) and DHG Pharmaceutical JSC (DHG).

On the Ha Noi Stock Exchange, the HNX-Index moved up 0.21 per cent to end at 103.99 points.

The northern market index inched up a total of 0.30 per cent in the previous three trading days.

More than 14 million shares were traded on the northern bourse, worth VND191 billion.

The afternoon trading session starts at 1pm. – VNS