Monday, September 23 2019

VietNamNews

VN-Index gains for second day, pre-purchases boost retail stocks

Update: September, 14/2019 - 08:24

 

An FPT Retail store. The company has allowed clients to pre-order new iPhone models, a move that is expected to boost its earnings in the fourth quarter. - Photo fptshop.com.vn

HÀ NỘI – Việt Nam’s benchmark VN-Index soared on Friday as expectations for high fourth-quarter earnings helped boost digital retail firms after they opened pre-orders for new iPhone products.

The VN-Index on the Hồ Chí Minh Stock Exchange gained 1.14 per cent to close at 987.22 points.

The VN-Index has increased by total 1.84 per cent in the last two trading days and made a weekly gain of 1.35 per cent.

More than 189.2 million shares were traded on the southern bourse, worth VNĐ4.48 trillion (US$192.5 million).

The southern bourse was lifted by strong gains of the retail sector, whose index jumped 4.4 per cent, data on vietstock.vn showed.

Mobile World Investment Corp (MWG) and FPT Retail (FRT) surged 4.8 per cent and 7 per cent after the two companies announced on their websites they had opened pre-orders for new Apple iPhones.

The move also raised expectations that the two firms will report a rise in their fourth-quarter earnings thanks to the sales of iPhones.

Sale prices were set between VNĐ21.99 million and VNĐ43.99 million at the two companies’ stores.

The prices are widely acknowledged as quite cheap compared to previous product launches.

Apple launched the new iPhone models on September 10 (US time), after having downsized its business in China due to concerns over trade tensions.

Investors also cheered the latest decision of the State Bank of Vietnam to cut its lending rates after other central banks have been doing the same thing facing intensive pressure of the US-China trade war and the risk of a global economic recession, MB Securities Co (MBS) said in its daily report.

Banks and securities firms were the two sectors that benefited the most from the decision. The two sector indices grew 2.7 per cent and 2.6 per cent.

Vietcombank (VCB), Vietinbank (CTG) and Bank for Investment and Development of Vietnam (BID) were the three strongest gainers in the banking sector.

The three banks’ shares jumped between 3 per cent and 3.5 per cent.

Largest securities firms by market capitalisation such as SSI Securities Corp (SSI), Viet Capital Securities (VCI) and HCM City Securities Corp (HCM) also made strong gains.

MBS forecast Friday’s strong gains would extend in the next trading days and the VN-Index may return to the 1,000-point level in the near term.

On the Hà Nội Stock Exchange, the HNX-Index gained 1.07 per cent to end at 102.20 points.

The northern market index increased by total 2.23 per cent this week.

More than 24.4 million shares were traded on the northern market, worth VNĐ292.4 billion. – VNS

 

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