VN stocks up on investor confidence

Friday, Jul 08, 2016 09:30

An investor at a securities trading platform. The VN Index hit a new eight-year high yesterday as investors proved upbeat on expectations US interest rates will remain unchanged this year. — Photo
HA NOI (Biz Hub) — Vietnamese shares advanced yesterday as investors were upbeat on an uncertain US interest rate increase and higher oil prices helped energy firms rebound.

The benchmark VN Index on the HCM Stock Exchange bounced back 1.8 per cent from Wednesday's slide to finish at a fresh eight-year high of 661.12 points.

The HNX Index on the Ha Noi Stock Exchange rallied for a fifth day, gaining 1.7 per cent to close at 88.16 points. The northern market index has jumped 4.1 per cent in the last five sessions.

Investor confidence was bolstered on expectations that the US central bank will take careful measures at the July meeting on whether it could raise interest rates or not.

"We believe that the US interest rates will remain unchanged in July and during the rest of this year," Bao Viet Securities Corp (BVSC) wrote in its daily report.

The US central bank would want to make sure of stability for global financial markets, which have proved to be vulnerable after the Brexit vote on June 24, BVSC said.

A rate hike would be delayed until the central bank is able to assess all effects that Brexit may cause for the global economy, US central bank announced in the minutes of the June policy meeting.

Higher investor confidence boosted blue chips on the stock market, including Vietcombank (VCB), dairy firm Vinamilk (VNM), insurer Bao Viet Holdings (BVH), Vietinbank (CTG) and Sai Gon-Ha Noi Bank (SHB).

VCB ended up 2 per cent, VNM advanced 2.8 per cent to the fresh highest value ever of VND147,000 (US$6.53), BVH and CTG edged up 0.8 per cent and 0.6 per cent, respectively, and SHB rose 1.6 per cent.

Local energy firms such as PetroVietnam Gas Corp (GAS), PetroVietnam Drilling and Well Service Corp (PVD) and PetroVietnam Technical Service Corp (PVS) returned to positive territory as oil prices extended their recovery for a second day.

US crude West Texas Intermediate (WTI) added 1.2 per cent to trade at nearly $48 a barrel, up 3 per cent in the two days.

On the national stock markets, GAS jumped 3.9 per cent, PVD increased by 1.3 per cent and PVS was up 0.6 per cent.

Listed companies that are expected to have higher earnings remained positive, including property developer Vingroup JSC (VIC), steel producers Hoa Sen Group (HSG) and Hoa Phat Group (HPG), and Tien Phong Plastic JSC (NTP).

Investors on both local exchanges traded nearly 216 million shares worth VND4.12 trillion ($183.4 million), an increase of 8 per cent from Wednesday's trading value. — VNS

Comments (0)