Stocks defy odds to end week on a high
HA NOI (VNS)— Despite the current atmosphere in the markets, stock indexes have enjoyed healthy gains over the last week.
On the HCM City Stock Exchange, the VN-Index gained over 3 per cent, compared to the previous Friday's close, to reach 560.19 points.
The average value and volume of trades totalled VND1.8 trillion (US$84.9 million) and 98.7 million shares, respectively.
After some sluggish sessions, blue chip stocks, such as private equity group Masan (MSN), Vinamilk (VNM), insurer Bao Viet (BVH), PetroVietnam Gas (GAS) and Refrigeration Electric Engineering (REE), rebounded with a welcome boost to the market.
Meanwhile, property developer Tan Tao (ITA) hit a six-month high, as it was reselected for tracking by the VN30 Index, replacing food processor Bourbon Tay Ninh (SBT).
Also notable was the debut of the Bank for Investment and Development of Viet Nam (BIDV) on the HCM City Stock Exchange on Friday.
The bank's chairman, Tran Bac Ha, predicted the domestic stock market would continue to grow this year. "The growth may not be a breakthrough, but it will be stable," he said.
In addition, the decree allowing an increase in foreign ownership in Vietnamese banks produced a positive effect on the market. "I hope it will give a boost to trading on banking stocks such as ours," Ha said.
Ha expects the bank to attract investment from exchange-traded funds after its listing. This year, the bank is targeting a 16-per-cent credit growth, at least VND6 trillion ($283 million) gross profit, non-performing loans reduced to below 2.6 per cent and 8 to 9 per cent dividends.
On the Ha Noi Stock Exchange, the HNX-Index rose 1.2 per cent over the previous week to 73.66 points. Trading value and volume averaged VND508.7 billion ($24 million) and nearly 47 million shares per session. Over the last week, foreign investors bought stock at a net value of VND1.12 trillion ($52.8 million).
The General Statistics Office announced on Friday that the nation's consumer price index (CPI) rose just 0.69 per cent in January, compared to December of last year. That is a slow increase, although the Tet (Lunar New Year) holiday – which often sees a surge of consumption – is fast approaching.– VNS