Tuesday, November 21 2017

VietNamNews

Bank shares climb on dong depreciation

Update: January, 08/2015 - 08:44
In HCM City, the benchmark VN-Index gained 0.43 per cent to close the session at 552.05 points. — Photo xaluan
HA NOI  (VNS) — Bank shares continued to rise yesterday after the State Bank increased the US dollar exchange rate by 1 per cent from VND21,246 per dollar to VND21,458, boosting both bourses.

On the HCM Stock Exchange, shares of banks such as Vietinbank (CTG), Eximbank (EIB), Military Bank (MBB), Sacombank (STB) and the Bank for Investment Development of Vietnam (BIDV) rose between 0.6 and 3 per cent. Vietcombank (VCB), which lost 1.2 per cent, was the exception.

Sai Gon-Ha Noi Bank (SHB) and Asia Commercial Bank (ACB) also climbed more than 1 per cent on the Ha Noi Stock Exchange.

The forex adjustment did not surprise the market, as many experts and organisations had predicted the central bank would depreciate the Vietnamese dong in the first quarter of this year. Many banks on Tuesday also unexpectedly raised their forex rate to the ceiling.

Last month, the central bank confirmed it would not let the value of the dong depreciate by more than 2 per cent this year.

In HCM City, the benchmark VN-Index gained 0.43 per cent to close the session at 552.05 points. The VN30, which tracks the top 30 shares by market value and liquidity, inched up 0.21 per cent to end at 607.65 points.

The market condition was neutral as advancers outnumbered decliners by just 127-112 while the other 67 stocks closed unchanged.

Market value dropped 10 per cent over Tuesday, however, reaching almost VND1.8 trillion (US$84.1 million) on trades of nearly 112 million shares.

FLC Group (FLC) reclaimed the position of the most active stock by the end of the session with 12.6 million shares traded, rising 0.9 per cent to settle at VND11,200 a share. Ocean Group (OGC) was pushed to second place on trades of 10.5 million shares but the share price slumped 4.05 per cent to finish at VND7,100.

On the Ha Noi Stock Exchange, the HNX-Index also climbed 0.45 per cent to close at 84.18 points as gainers outnumbered losers by 109-86 and 165 closed flat.

Liquidity slightly improved over the previous session with trading value rising 10 per cent to reach VND686 billion ($32.1 million). Market volume was little changed, totaling 53.3 million shares.

FLC's investment arm, KLF Joint Venture Global Investment Co (KLF), remained the most active code with 8.5 million shares traded, slipping 0.87 per cent to end at VND11,400 a share.

Foreign investors unexpectedly concluded the session as net sellers in HCM City, unloading shares worth VND95 billion ($4.4 million). They were still net buyers on Ha Noi's exchange but picked up only VND8.8 billion ($411,000) worth of shares. — VNS


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