Friday, October 28 2016


Market rises as dong drops 1%

Update: May, 08/2015 - 08:40

Investors watch market fluctuations at the FPT stock trading floor in Ha Noi. — VNS Photo Truong Vi

HA NOI (VNS) — Shares remained in uptrend on the two exchanges yesterday afternoon after the central bank depreciated the local dong by another 1 per cent.

The State Bank of Viet Nam yesterday decided to lift the inter-bank average foreign exchange rate between the Vietnamese dong and US dollar from VND21,458 to VND21,673 per dollar.

On the HCM Stock Exchange, the VN-Index added 0.67 per cent to close the session at 552.98 points.

The VN30, which tracks the top 30 shares by market value and liquidity, also grew 0.52 per cent to end at 582.40 points.

According to Nguyen Van Dung, chairman of Tan Viet Securities Co, the hike in the foreign-exchange rate received positive market reaction compared to the negative impacts of previous rises.

"A few years ago, the stock market used to tumble when the central bank adjusted the foreign exchange rate, but this time, many shares still climbed after the information," Dung told the

He said the previous adjustments often occurred when the macro-economic condition was weak, but this time the economic state was recovering.

Apart from spurring exports, adverse impacts on importers was not substantial as importing companies had enjoyed a reduction in the prices of raw material and fuel prices for a long time, Dung said.

The market breadth was good as losers outnumbered gainers by 122-81 while another 93 stocks closed unchanged.

Heavyweight stocks, such as Masan Group (MSN) and logistics Gemadept (GMD), still rallied, but bank shares were mixed. BIDV (BID), Vietcombank (VCB), Eximbank (EIB) and Vietinbank (CTG) advanced but Sacombank (STB) and Military Bank (MBB) retreated to the reference price.

Liquidity declined, however, with both market volume and value dropping 20 per cent compared with the previous session, totalling more than 70 million shares worth nearly VND1.06 trillion (US$49.1 million).

On the H Noi Stock Exchange, the HNX-Index increased 0.7 per cent to finish the day at 79.90 points with 122 shares climbing, 79 diving and 160 closing flat.

The HNX 30 Index, which tracks the 30 stocks with the highest liquidity, added 0.91 per cent to settle at 150.71 points.

However, liquidity remained the concern when the market volume and value continued to decrease by another 30 per cent from Wednesday, reaching just 35 million shares worth nearly VND388.5 billion ($18 million).

The foreign sector returned as net buyers in the two markets, picking up shares worth a combined VND121 billion ($5.6 million). — VNS

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