Monday, June 18 2018


Fed fuels VN stocks resurgence

Update: September, 20/2013 - 08:20

An investor works with FPT Securities Company in Ha Noi. The domestic market yesterday was buoyed by the US Federal Reserve's move to retain its stimulus package. — VNS Photo Thai Ha

HA NOI (VNS) — Vietnamese stocks rallied yesterday, following the US Federal Reserve's surprising decision to continue its US$85 billion per month stimulus.

Analysts from FPT Securities Co said the decision triggered a brief sugar-high in the market but said the next session would resume with "cautious domestic investor sentiment and several major shares facing high selling pressure."

Bao Viet Securities Co analyst, Nguyen Xuan Binh, alleged that the Fed could still taper its stimulus in future given the decision would be reviewed monthly.

Meanwhile, on the HCM City Stock Exchange, the VN-Index rebounded by 0.4 per cent to 476.09 points.

Trading value, however, decreased slightly on Wednesday's level to reach VND629.1 billion (US$29.6 million) as around 35.6 million shares changed hands.

Among the 30 largest stocks in capitalisation and liquidity, only three retreated, including Eximbank (EIB), PetroVietnam Finance (PVF) and Sacombank (STB). PVF which has been closing at the floor price for seven successive sessions looked poised for the same result at close of trade on Monday.

The VN30, also gained 0.4 per cent to 533.83 points.

On the Ha Noi Stock Exchange, the HNX-Index closed at 58.99 points, with a 0.44 per cent rise.

The value of trades on the bourse remained virtually the same as Wednesday's figure, totalling VND174.9 billion (US$$8.2 million) on a volume of nearly 28.2 million shares.

The HNX30, representing the performance of Ha Noi's top 30 shares, added 0.85 per cent to 107.94 points.

Meanwhile, foreign investors yesterday shifted to net buyers in HCM City by a margin of VND10.35 billion ($488,200) but were net sellers in Ha Noi by VND8.8 billion ($415,000).

The volume of foreign transactions accounted for less than 15 per cent of total market volume. However, as foreign investors held onto major stocks dominating benchmark indices, their trades significantly affected the domestic market, said Saigonbank Berjaya Securities Co analyst Nguyen Thuy Hoang Phuong.

She did not expect any positive impacts from foreign investors to the market in the fourth quarter. — VNS

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