Monday, December 10 2018

VietNamNews

Stocks set to rise further after Tết

Update: February, 21/2018 - 09:00
Việt Nam’s stock market is expected to rise further after the Tet (Lunar New Year) holiday and even throughout 2018, boosted by positive macro economic development as well as support of foreign traders.— Photo baodautu.vn

HÀ NỘI — Việt Nam’s stock market is expected to rise further after the Tet (Lunar New Year) holiday and even throughout 2018, boosted by positive macro economic development as well as support of foreign traders.

The benchmark VN-Index on the HCM Stock Exchange (HOSE) was up 1.7 per cent to close  on February 13 at 1,059.73 points, totalling a two-day increase of 5.47 per cent.

The HNX Index on the Hà Nội Stock Exchange (HNX) edged up 1.88 per cent to end at 124.31 points on Tuesday, making a two-day surge of 4.47 per cent.

The UPCOM Index on the Unlisted Public Company Market (UPCoM) inched up 1.83 per cent to finish at 58.5 points.

During the last trading day of the lunar year (January 13), the market rebounded strongly and remained positive throughout the trading day.

The market leaders were large-cap stocks of PetroVietnam Gas (GAS) (4.4 per cent), Vingroup Joint Stock Company (VIC) (3 per cent), Việt Nam Joint Stock Commercial Bank for Industry and Trade (CTG) (3.8 per cent), JSC Bank For Investment And Development Of Việt Nam (BID) (2.6 per cent) and Hoa Phat Group Joint Stock Company (HPG) (3.1 per cent).

The laggards were Ho Chi Minh City Securities Corporation (HCM) (3.39 per cent), Bank for Investment & Development of Việt Nam Securities Company (BSI) (7 per cent), Pharmaceutical Joint Stock Company (DHG) (4.8 per cent) and PetroVietNam Low Pressure Gas Distribution JSC (PGD) (2.4 per cent).

Foreign investors on Tuesday were net sellers with VNĐ636.4 billion (US$28 million) on HOSE, focusing on HPG (VNĐ164.8 billion), VRE (VNĐ140.5 billion) and VRE (VNĐ105.7 billion). In addition, they sold a net of VNĐ33 billion on the HNX.

According to Trần Văn Dũng, Chairman of the State Securities Commission (SSC), in 2017, Việt Nam recorded impressive economic growth with many macro-economic indicators set by the Government were achieved.

It can be said the stable macroeconomic status is significantly supporting the stock market and will improve further thanks to the determination of the Government to act on many issues such as GDP growth, curbing inflation, accelerating equitisation and divestment, increasing foreign exchange reserves, Dũng said.

The performance of listed companies also improved over 2016, he added.

Last year the Government issued Resolution 42/2017/QH14 on the settlement of non-performing loans to pilot the settling of the bad debt of credit institutions, demonstrating the determination of Việt Nam’s Government to resolve the long-standing NPL issue.

This resulted in stable liquidity and interest rates, helping listed bankers improve significantly their financial quality, strongly dragging up the stock market.

Foreign investment inflows into Việt Nam in 2017 surged sharply from 2016, which significantly contributed to drive up the stock market, Dũng said, with net capital inflows of $2.9 billion, up 130 per cent over 2016.

He also added that foreign investors were net buyers of VNĐ9.6 trillion in January and over VNĐ5 trillion in early February this year, strongly focusing on the sessions right before the Tet holiday.

According to BIDV Securities (BSC), the market’s recovery during the last two sessions has created good sentiment for the post-holiday period, causing investors to release new capital into the market. — VNS

 

 

Send Us Your Comments:

See also: