|Investors watch share movements at APEC Securities Company. — VNS Photo Doan Tung
HA NOI (VNS) — Shares in Viet Nam's two stock markets continued to rally yesterday after 12 Pacific Rim countries reached an historic agreement which will liberalize commerce in 40 per cent of the world's economy.
The benchmark VN-Index on the HCM Stock Exchange rose for a second day, adding another 2 per cent to close the session at 581.3 points. In Ha Noi, the HNX-Index also gained 2.1 per cent to end the day at 80.5 points, extending its winning steak to five sessions.
"This is the good news investors were waiting for that gave a boost to the market," said Tran Minh Hoang, head of the analysis department at Vietcombank Securities Co.
Hoang said that not only should Vietnamese export companies benefit from the agreement but support industries such as banking, construction and logistics sectors would also be gainers.
TPP, which would cut trade barriers among participating nations, is expected to expand Viet Nam's GDP by US$33.5 billion and lift its exports by $68 billion by 2025, said Vietnamese Minister of Industry and Trade Vu Huy Hoang after the pact's conclusion.
He said Viet Nam's key export products like textile, garment, footwear and seafood would gain breakthroughs in export value to big markets such as the United States, Japan and Canada.
Seafood exporter Hung Vuong Corp (HVG) hit the daily increase ceiling of 7 per cent in the HCM City market yesterday while apparel maker Mirae (KMR) jumped 6.3 per cent. Companies such as Thanh Cong Textile Garment Investment Trading (TCM) and TNG Investment and Trading (TNG) saw gains of 6 to 7 per cent in the morning fall to 1 to 2 per cent in the afternoon due to profit-taking.
Big banks like Vietcombank (VCB), Bank for Investment and Development of Vietnam (BID) and logistic Gemadept (GMD) also climbed 2 to 4 per cent each.
The trade agreement must still be approved by the legislatures of each participating nation before being implemented.
"The market will likely have only a small rise in October since this agreement needs more time for the 12 nations to ratify it and for it to take full effect," said Bui Nguyen Khoa, an analyst at BIDV Securities Co.
Overall market conditions were positive with nearly 50 per cent of 674 trading stocks advanced while only 17 per cent declined.
Liquidity also went up in the two markets.
In HCM City, more than 179 million shares worth over VND3 trillion ($133 million) were traded, up 81 per cent in volume and 72 per cent in value compared with Monday's levels. These figures were also much higher than the daily average of over 93 million shares and VND1.5 trillion ($67 million) seen in September.
In the Ha Noi's market, the market volume also increased 48 per cent over Monday, totaling 60.5 million shares while the value of trades jumped over 50 per cent to reach VND652.2 billion ($29 million). — VNS