|Workers operate machinery at PV Gas Ca Mau Co. Oil and gas companies, and banks led the market uptrend yesterday. — VNA/VNS Photo Huy Hung
HANOI (VNS) — Shares rose yesterday on the two Vietnamese exchanges, prompted by an improvement in investor confidence, although shares across Asia were mixed after a fresh rate cut by the People's Bank of China.
On Tuesday China decided to cut interest rates and lowered the amount of reserves that banks must hold. Regional stocks responded in different ways following this move.
Shares in Japan, Australia, South Korea and Thailand went up but Chinese and other countries' markets sank as investors feared that these measures would not be strong enough to halt the collapse in China, as well as stabilise its slowing economy.
In Viet Nam domestic investors increased buying in both markets, extending the rally to two consecutive days.
The benchmark VN-Index on the HCM Stock Exchange gained almost 16 points, or 3 per cent, to close the day at 545.89 points. The Index also rose 0.58 per cent on Tuesday.
On the Ha Noi Stock Exchange, the HNX-Index improved 3.3 per cent to end the day at 76.46 points.
The two indexes declined steeply during the last two weeks after China devalued its currency. Before the rebound, the VN-Index had lost over 90 points, or about 14 per cent since August 11 and almost hit the yearly low of about 510-520 points. The HNX-Index also lost 11 points, or 13 per cent, since August 11.
According to Nguyen Thi Huu, director at MB Securities Co's Bac Sai Gon branch, Monday's trading signaled that the market had reached the bottom and would bounce back.
On Monday the VN-Index at one point fell below the yearly bottom of about 510 points before rebounding, driven by increased bargain hunting.
"From what's been happening in the market since the beginning of the week, I reckon the VN-Index could bounce back to 560-570 points. However, the domestic market is being affected by what is happening in the global markets, investors would be wise to watch global financial movements closely," Huu said.
The overall market condition was positive yesterday with nearly 60 per cent of the total 674 stocks gaining value on the two exchanges, of which 26 hit the daily rise limit set by the government. Only 89 stocks ended lower and 198 closed unchanged.
Oil and gas companies and banks led the market uptrend. PV Gas (GAS), PetroVietnam Drilling and Wells Service (PVD), Petroleum Equipment Assembly & Metal Structure (PXS) and PetroVietnam Drilling Mud (PVC) all hit the ceiling of 7-10 per cent.
Six of total nine listed banks climbed, of which BIDV (BID) rose by the maximum of 7 per cent. Others increased between 2-4.5 per cent. Two banks closed unchanged and only Eximbank (EIB) ended lower.
Liquidity declined from Tuesday with a total of 173 million shares worth more than VND2.54 trillion (US$113.1 million) being traded in the two markets, down 25 per cent in volume and 23 per cent in value compared with Tuesday's levels.
However, foreign investors again went contrary to domestic investors. They continued their net selling yesterday with another value of over VND203 billion ($9 million). Net foreign selling on Tuesday reached VND54.6 billion ($2.4 million). — VNS