Thursday, August 16 2018


Shares rise on rate cut, eased credit

Update: April, 12/2012 - 09:26

HA NOI — Shares rose on both national stock exchanges with investors upbeat on news that the central bank yesterday cut the deposit interest rate ceiling and eased the real estate market credit policy.

Late on Tuesday, the State Bank of Viet Nam decided to lower the cap on deposit interest rates from 13 per cent per annum to 12 per cent.

In a meeting yesterday morning, Governor Nguyen Van Binh said the move was made to unleash the tie on credit for real estate and consumption activities. Though lending to securities investment was still discouraged, Binh said he believed that without bank loans, the stock market would continue to develop and benefit from economic improvements such as lower interest rates and falling inflation.

"The uptrend on the stock market will not be quick but sustainable," Binh said.

Real estate stocks soared yesterday on the news, with many hitting their daily ceiling prices, including Tan Tao Investment Industry Corp (ITA), Development Investment Construction Corp (DIG), Quoc Cuong Gia Lai Co (QCG), Ha Do Co (HDG) and Ninh Van Bay Travel Real Estate Co (NVT).

On the HCM City Stock Exchange, the VN-Index advanced 1.75 per cent to close yesterday afternoon's session at 458.74, the highest since March 27.

Of the 30 leading shares by market value and liquidity, 27 rallied to drive the VN30 Index up 1.98 per cent to close at 527.63.

Advancers largely outnumbered decliners by 237-26, with 116 codes reaching their daily limit rise of 5 per cent.

Market value climbed 19 per cent to VND1.56 trillion (US$74.3 million) on a total volume of 99.4 million shares.

SACOM Development and Investment Corp (SAM) remained the most active stock by the end of the session with 4 million shares, rising 4.3 per cent to settle at VND7,300.

On the Ha Noi Stock Exchange, the HNX-Index gained 2.78 per cent over Tuesday to conclude yesterday at 77.51 points.

Value of the day's trades increased 10 per cent to VND956.8 billion ($45.6 million) while trading volume of 54.5 million shares rose over 12 per cent to 98.4 million shares.

Of 389 total listings, 257 posted gains while only 43 declined and 39 closed unchanged. Fifty codes were not traded yesterday.

Habubank (HBB) still led trades nationwide with over 11 million shares changing hands, closing up 4.4 per cent at VND7,100.

Unaffected by the central bank's move, foreigners still finished yesterday as net buyers on the HCM City market by a margin of over VND18 billion ($862,000) worth of shares, but they were net sellers on the Ha Noi bourse, unloading only VND6.85 billion ($326,000) worth of shares. — VNS

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