VN stocks rise despite trade war

Wednesday, Sep 19, 2018 07:32

Vietnamese shares recovered on Tuesday, driven by large-cap stocks despite further complications in US and China trade relations.— VNA/VNS Photo

Vietnamese shares recovered on Tuesday, driven by large-cap stocks despite further complications in US and China trade relations.

The benchmark VN-Index on the HCM Stock Exchange gained 0.60 per cent to close at 993.49 points.

The southern market index dropped 0.38 per cent on Monday.

The HNX Index on the Ha Noi Stock Exchange was up 0.74 per cent to end at 113.60 points.

The northern market fell 0.54 per cent in the first trading session of the week.

More than 258.7 million shares were traded on the two local exchanges, worth VND5.42 trillion (US$241 million).

Local stocks rebounded in the afternoon session after experiencing a tough Tuesday morning, driven by blue chips.

The large-cap VN30 Index advanced 0.62 per cent to finish the session at 959.75 points, with 21 of the 30 largest stocks by market capitalisation making gains.

Gainers in the VN30 basket included steel producer Hoa Sen Group (HSG), tech firm FPT Corporation (FPT), Coteccons Construction Corporation (CTD) and dairy producer Vinamilk (VNM).

HSG hit its daily increasing band of 6.6 per cent to total its two-day growth of 9 per cent after the company last Friday announced it would buy back 15,000 treasury shares.

On the sector basis, financial-banking, retail and construction were among the best-performing industries, growing between 1.3 per cent and 2.8 per cent, data on showed.

Among financial-banking stocks, Bank for Investment and Development of Viet Nam (BIDV) jumped 3.1 per cent to end Tuesday at VND35,250.

Local media had cited a recent report by Viet Capital Securities Corporation (VCSC) saying that BIDV could sell private shares in the remaining months of the year at around VND38,500-40,000 each.

Other financial-banking stocks that also recorded good gains were Sacombank (STB), VNDirect Securities JSC (VND), insurer Bao Viet Holdings (BVH) and Saigon Securities Inc (SSI).

Among other large-cap companies, the high-end real estate firm Vinhomes (VHM) has been admitted into the investment portfolio of the exchange-traded fund VanEck Vectors Vietnam ETF (VNM ETF).

The rise of large-cap stocks was mostly attributed to improved investor confidence across Asia on expectations that China would find solutions to stimulate its economy to encounter pressure from its trade tensions with the US.

On Monday, US President Donald Trump announced a list of 6,000 Chinese products that would be subject to 10 per cent tariffs on $200 billion worth of Chinese imports.

The new tariff would take effect next Monday, and Trump also said he was considering raising tariff from 10 per cent to 25 per cent beginning next year.

According to Bao Viet Securities JSC (BVSC), the latest trade news had closed the door for expectations on a new round of negotiations between the two largest economies.

But it could be a tactical move by Trump to gain trust from voters who had previously selected him for the presidency by being tough on China, especially when the mid-term assembly coming up, BVSC said. — VNS

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