HA NOI — Shares gained yesterday on both of the nation's stock exchanges, as the value and volume of trades recovered.
On the HCM City Stock Exchange, the VN-Index closed up 1.18 per cent to 423.16 points on trades totalling VND661.7 billion (US$31.5 million). Market sentiment was positive, with 206 codes rising and only 41 declining.
Blue chips led market gains. The VN30 Index, tracking the bourse's 30 leading shares by market capitalisation and liquidity, rose 1.12 per cent to 502.79 points. Da Nang Rubber Co (DRC), real estate developer Tan Tao (ITA) and Vinamilk (VNM) all hit their ceiling prices during yesterday's session, while software giant FPT, Phu Nhuan Jewelry (PNJ), PetroVietnam Drilling Services Co (PVD) and Sacombank (STB) all retreated.
Financial conglomerate Ocean Group (OGC) was the most-active share in HCM City with over 3.5 million changing hands. The share, also included in calculations of the VN30, rose 3.1 per cent.
On the Ha Noi Stock Exchange, the HNX-Index jumped 2.23 per cent to conclude yesterday's session at 70.45 points. Nearly 48.6 million shares changed hands, worth VND696.5 billion ($33 million).
Advancers outnumbered decliners by 199-50, led by large-cap shares. The HNX30 Index, which tracks the northern bourse's leading shares, closed up 3.6 per cent to 134.96 points.
Kim Long Securities Co (KLS) was the most-active code nationwide, with 4.7 million traded.
Analysts expected the stock market to rally in the coming month, supported by the prospect of declining interest rates and positive earnings in the second quarter. Last month, banks refinanced outstanding commercial debt at lower rates, although, Sai Gon-Ha Noi Securities Co analyst Doan Anh Nguyet noted, "it lacked universality."
In July, credit grew by only 0.57 per cent, down 0.76 per cent from June, and companies continued to lack capital to expand production. "This proves that economic policies have not brought about practical effects," Nguyet said.
The critical issue of reviving consumer spending has yet to be addressed, she added.
Inflation this year was expected to increase by 5-6 per cent, she noted, helping soothe concerns over deflation in the past two months. — VNS