|Investors observe market developments at the Tan Viet Securities trading floor. — VNS Photo Doan Tung
HA NOI (VNS) — Shares climbed yesterday on the nation's two exchanges on brightening export prospects driven by the near conclusion of the Trans Pacific Partnership (TPP) free trade agreement.
On the HCM Stock Exchange, the VN-Index gained 1.4 per cent, closing the session at 570 points. Meanwhile, the HNX-Index on the Ha Noi Stock Exchange added another 0.7 per cent to end the day at 78.8 points, extending its winning streak to four sessions in a row.
Yesterday morning, investors expected an official announcement about the negotiation results in a meeting in Atlanta but as of 5pm local time in Viet Nam, no joint statement has been declared.
The US-based EOS Intelligence research company estimated Viet Nam's garment and textile exports to the United States could increase to US$30 billion by 2020 if the TPP took effect, a substantial increase from $8.6 billion of exports recorded in 2013.
Stocks of exporting companies that are forecast to benefit most from the TPP were the biggest gainers yesterday.
Garment companies such as Thanh Cong Textile Garment Investment Trading (TCM), TNG Investment and Trading (TNG), MiraeCo (KMR) and seafood exporter Hung Vuong Corp (HVG) all climbed between 5 per cent and 7 per cent.
Large-cap companies also advanced strongly yesterday. Dairy giant Vinamilk (VNM) rose 3 per cent, insurer Bao Viet Holdings (BVH) jumped 4.4 per cent and Vietinbank (CTG), the biggest listed lender, gained 2.6 per cent.
Some analysts are skeptical that the TPP can boost Vietnamese stocks much further.
"I think the TPP's impact on the Vietnamese stock market is fading and will not likely create a new wave of strong rises," said Tran Hai Yen, analyst at Bao Viet Securities Co.
Yen said it would take a longer time to assess the long-term influence of this free trade agreement, which spans 12 countries in Asia, North America and South America, on the performance of Vietnamese companies.
Liquidity went up on the two markets.
In HCM City's market, both trading volume and value grew 20 per cent over Friday, totaling nearly 99 million shares worth VND1.76 trillion ($78.2 million), higher than September's average of 93.4 million shares and VND1.5 trillion ($66.7 million).
On the Ha Noi's exchange, the similar figures yesterday were 41 million shares worth over VND434 billion ($19.3 million), also higher than the daily trading average of 35.3 million shares and VND401 billion ($17.8 million) seen in September. — VNS