VN stocks rise for second day

Thursday, Mar 03, 2016 08:10

Investors at the Hoang Gia Securities trading floor. Vietnamese shares extended gains on both local exchanges yesterday. — VNS Photo Truong Vi
HA NOI (Biz Hub) — Vietnameses shares extended gains on both local exchanges for a second day yesterday, led by financial firms such as banks and insurance companies.

The benchmark VN Index on the HCM Stock Exchange rose 1.5 per cent to close at 570.18 points, extending its two-day gains to 1.9 per cent.

The HNX Index on the Ha Noi Stock Exchange added 0.4 per cent to finish at 79.30 points. The northern index gained 0.7 per cent over the last two sessions.

Local market indices kept pace with the growth of global stock markets during yesterday's trading session after the US announced economic data that beat expectations, Sai Gon-Ha Noi Securities Corporation (SHS) wrote in the daily report.

Improved US economic data lifted investor confidence, easing fears of a weaker Vietnamese dong against the US dollar. Yesterday Viet Nam's central bank cut the reference mid-point rate slightly by VND2 to VND21,905 per US dollar.

A stronger Vietnamese dong and better investor confidence benefited local financial stocks, including banks and insurance companies.

The four largest banks made big gains in the markets. Vietinbank (CTG) rose 1.7 per cent, Sacombank (STB) added 1.8 per cent, Vietcombank (VCB) increased by 2.4 per cent, and the Bank for Investment and Development of Viet Nam (BID) jumped 3.3 per cent.

In the insurance sector, Bao Viet Holdings (BVH) surged 6.7 per cent, BIDV Insurance Corporation (BIC) went up by 6.3 per cent, and Bao Minh Insurance Corporation (BMI) jumped 4.4 per cent.

Other stocks that use oil products as their input materials for production also made gains after crude oil prices declined yesterday.

US benchmark crude West Texas Intermediate (WTI) fell 2.2 per cent to trade at $33.66 a barrel and London-traded Brent crude dropped 1 per cent to trade at $36.44 a barrel.

Binh Minh Plastic JSC (BMP) gained 2.2 per cent, Tien Phong Plastic JSC (NTP) added 2.4 per cent, and PetroVietnam Fertiliser and Chemicals Corporation (DPM) leaped 2.8 per cent.

Investors traded nearly 204 million shares worth nearly VND3 trillion ($132 million) yesterday, an increase of 9.3 per cent from Tuesday's trading value. — VNS

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