HA NOI — Shares on the nation's stock exchanges extended the previous day's losing streak during yesterday's session despite the announcement of Government moves to reduce interest rates.
However, some money flowed into the market towards midday, easing the pace of decline.
"This is the right time to start lowering interest rates," said Government Office chairman Vu Duc Dam at a meeting on Tuesday. Shortly thereafter, State Bank of Viet Nam Governor Nguyen Van Binh announced that key interest rates would be lowered by 1 per cent in a few days.
"Year-on-year inflation rate will likely continue to decline in the coming months, creating a better outlook for interest rates in the next quarter," commented Kim Eng Securities Co analysts in a note, adding that the information helped key indices recover from earlier losses yesterday morning.
Of the nine listed banks on both bourses, only Habubank (HBB) and Sai Gon – Ha Noi Bank (SHB) rose to their ceiling prices. Meanwhile, shares of Eximbank (EIB), Sacombank (STB) and Asia Commercial Bank (ACB) all bottomed out.
While bank stocks retreated, a number of real estate shares advanced, including Licogi (LCG), Tu Liem Urban Development (NTL) and Sudico (SJS).
On the HCM City Stock Exchange, the VN-Index retreated by 0.2 per cent to close at 444.02 points. The value of trades reached VND1.4 trillion (US$66.7 million), a 36-per-cent decline from the previous day's level. The volume of trades reached nearly 101.3 million shares.
The VN30, which tracks HCM City's 30 top stocks by capitalisation and liquidity, shed 0.5 per cent to close at 505.90. Software giant FPT, Vinamilk (VNM) and real estate developer Hoang Anh Gia Lai (HAG) were the only three of the 10 leading shares by capitalisation to gain, each advancing by 0.5-2.7 per cent.
Military Bank (MBB) was the most-active share on the HCM City bourse on a volume of 9.6 million shares, followed closely by Eximbank with a volume of 9.3 million.
Trading on the Ha Noi Stock Exchange was mixed, but the HNX-Index concluded the day down 0.23 per cent to 75.03 points. Value reached VND1.1 trillion ($52.4 million) on a volume of just over 118 million shares, while losers outnumbered gainers by 215-108.
HBB was the most-active share nationwide with 27.3 million changing hands, but SHB also saw active trading of over 11 million shares. — VNS