Saturday, July 20 2019

VietNamNews

Shares rise on Fed rate hike hopes

Update: June, 08/2019 - 07:31

 

 

Workers of PV Gas in the company's factory. PV Gas shares were among best performers on the Hồ Chí Minh Stock Exchange on Friday with growth of 3.2 per cent. — Photo pvgas.com.vn

 

HÀ NỘI – Shares accelerated growth in Friday’s afternoon session, driven by improved sentiment in both local and regional markets on hopes the US Federal Reserve (Fed) lowers its interest rate twice this year.

On the Hồ Chí Minh Stock Exchange, the VN-Index increased 1.06 per cent to end Friday’s session at 958.28 points.

On the Hà Nội Stock Exchange, the HNX-Index rose 1.14 per cent to close at 104.21 points.

Liquidity on the two bourses increased with 174.6 million shares worth VNĐ3.6 trillion (more than US$154 million) traded, up 19 per cent in volume and 6 per cent in value compared to Thursday.

“The market is expected to improve early next week after two rebounding sessions toward the weekend with rising liquidity,” said Trần Xuân Bách, a stock analyst at Bảo Việt Securities Joint Stock Company in a daily report.

Cash flow rotated among stock groups with macro-economic benefits, including textiles, industrial property, electricity and information technology, he said, adding that bank stocks and oil and gas stocks would continue gaining next week, despite facing strong volatility and correction risk.

Blue chips drove the market with 24 of 30 leading stocks by value and liquidity on the Hồ Chí Minh Stock Exchange gaining and only three declining. The best performers included PV Gas (GAS) which increased 3.2 per cent, followed by Vinhomes (VHM), Mobile World Investment Group (MWG) and Phú Nhuận Jewellery (PNJ) with growth of more than 2 per cent.

Banking stocks were also big gainers, as 11 of 13 listed banks increased, of which Bank for Investment and Development of Việt Nam (BID), Military Bank (MBB), Sài Gòn-Hà Nội Bank (SHB), Sacombank (STB) and Tiên Phong Bank (TPB) increased by more than 1 per cent.

According to BIDV Securities Joint Stock Company, local and regional market sentiment recovered slightly as market expectations focused on the possibility that the Fed might lower interest rates twice this year.

This is expected to cool down US-Mexico trade tension and central banks will have appropriate policy adjustments to minimise losses from prolonged China-US trade friction.

Bảo Việt Securities JSC predicted the VN-Index would move toward the resistance zone of 965-970 points in several sessions.

“In this zone, we leave open the possibility that the market will face another adjusting pressure,” it said. — VNS

 

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