HA NOI (VNS)– Stocks fluctuated on both exchanges yesterday but managed to close on a positive note, with investors remaining cautious over gains made following recent interest rate cuts.
|An investor monitors trades at Bao Viet Securities Co. — VNS Photo Viet Thanh
The central bank's decision last weekend to cut interest rates by one per cent came as no surprise to investors after the Prime Minister revealed the move during recent meetings with authorities in HCM City and Ha Noi, said Nguyen Xuan Binh from Bao Viet Securities Co, adding that slowing inflation had paved the way for the cut.
"However, many enterprises are struggling to access loans at this reduced rate," Binh said.
"Reducing deposit rates is necessary but not enough. Accelerating the restructuring of the banking system and dealing with bad debt will be key to reducing borrowing costs in the medium-term," he emphasised.
The VN-Index on the HCM City Stock Exchange rose another 0.41 per cent to close at 401.34 points yesterday, but trading value decreased 54.4 per cent from Monday totalling just VND579.6 billion (US$27.6 million).
Blue chips gained ground as the VN30, tracking the top 30 shares on the bourse, closed up 0.46 per cent at 469.15 points. They were also among the most heavily-traded stocks yesterday on the southern bourse.
Kinh Bac City Development (KBC) led the group with 2.83 million shares changing hands, adding 3.85 per cent to close at VND5,400. Vietinbank (CTG) closely followed with over 2.65 million shares traded, climbing 3.7 per cent to VND19,600.
On the Ha Noi Stock Exchange, the HNX-Index finished yesterday's session at 55.04 points, up 0.07 per cent, despite decliners outnumbering advancers by 115-90.
Volume of trades was down 10 per cent from a day earlier, reaching 54.75 million shares, while trading value dropped 16 per cent, totalling VND379.5 billion ($18.1 million).
Sai Gon – Ha Noi Bank (SHB) took over from PetroVietnam Construction (PVX) as the most active code on the Ha Noi bourse with 7.7 million shares exchanged. PVX finished second on trading of 7.6 million shares.
SHB closed 1.9 per cent up at VND5,400 while PVX climbed over 2 per cent to VND5,000.
Foreign investors concluded yesterday as net buyers on both exchanges, picking up a combined net value of over VND73 billion ($3.5 million). — VNS