Wednesday, July 17 2019

VietNamNews

Fed future plan on rate cuts lift VN stocks

Update: June, 20/2019 - 21:40
Inside a Vietcombank office. The bank shares gained 2.4 per cent on Thursday, boosting both the banking sector and the Vietnamese stock market.  VNA/VNS Photo Trần Việt

HÀ NỘI — Vietnamese shares joined cheered global markets today after the Fed eyed rate cuts from next month and investors hoped for possible trade war solutions at the G20 summit next week.

The benchmark VN-Index on the Hồ Chí Minh Stock Exchange increased 1.00 per cent to close at 959.18 points.

The VN-Index has gained a total 1.60 per cent in the last two trading days.

Global stocks moved higher on Thursday after the US central bank decided on Wednesday not to raise interest rates and signalled rate cuts starting in July.

The move aims to support the global economy, which has been hit by worries about a recession, especially amid the US-China trade war.

The news eased investors’ worries as they had been worried by negative news in both international and domestic markets, according to MB Securities Co (MBS).

Bank stocks led the market up with the sector index gaining 2.4 per cent.

The best-performing bank stocks included Vietinbank (CTG), VPBank (VPB), Military Bank (MBB) and Vietcombank (VCB), which rose between 2.4 per cent and 3.7 per cent.

Vietcombank shares on Thursday rose 2.4 per cent to close at VNĐ71,500 per share, just below the record high of more than VNĐ73,000 per share in March 2018.

The market sentiment clearly improved, proven by the strong increase of trading liquidity, MBS said in its daily report.

Nearly 185.5 million shares were traded on the southern bourse, worth VNĐ4.4 trillion (US$189.7 million).

The figures were the highest since June 3.

Another factor that helped increase cash injected into the stock market was the difference between the VN30 futures and the VN30-Index.

The large-cap VN30-Index on Thursday surged 1.20 per cent to end at 864.59 points. The VN30 futures that expired on Thursday closed at 865 points.

The VN30 futures that will expire on July 18 ended Thursday at 884 points.

Such difference between the VN30 futures and the VN30-Index proved investors were very optimistic about the market’s short-term prospects, Sài Gòn-Hà Nội Securities (SHS) said in a note.

However, Thursday’s strong gain could only be technical and short-lived as the VN-Index had not run into its short-term uptrend, SHS said.

Factors that will weigh on the market sentiment in the short term include the portfolio reviews of exchange-traded funds (ETFs) and the G20 summit next week, which could deliver unexpected messages from the leaders of the world’s largest economies.

On the Hà Nội Stock Exchange, the HNX-Index rallied for a fourth trading day, adding 1.24 per cent to finish at 105.06 points.

The northern market index has risen a total 1.54 per cent since Monday.

More than 29.4 million shares were traded on the northern bourse, worth VNĐ373 billion. — VNS

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