VN-Index goes up on rising buying

Stocks on the Ho Chi Minh Stock Exchange started week in bright note, extending the winning streak to three consecutive days on August 29 as investors regained appetite in equities amid improved macroeconomic data.

Interest rate cut campaign and lower food and fuel retail prices ensured investors that the situation is brightening and inflation will be control soon.

The State Bank of Vietnam decided to raise the reserve-requirement ratio on US dollar deposits by 1 percent since September, the third time this year. This movement boosted speculation that interest rates would sharply reduce.

Vietnam’s benchmark VN-Index, which tracks 295 companies and five mutual funds listed on the Ho Chi Minh City Stock Exchange, levitated 2.22 percent, or 8.96 points to close at 413.37 points.

The gauge added up 0.9 percent last week, paring this year’s loss to 15 percent.

On the index, 212 stocks grew, 41 dropped, while 47 remained unchanged.

Trading on the city bourse rose by 38 percent in volume and 30 percent in value over the previous trading session as 40.74 million shares changed hands at a value of VND615 billion.

Saigon Securities Inc. (SSI), the country’s largest brokerage, was the most active share in volume with 2.09 million shares changing hands.

Sacom Development & Investment Corporation (SAM) followed with 1.99 million shares traded, tagged along by Ho Chi Minh City-based Refrigeration Electrical Engineering Corporation (REE) with 1.88 million shares.

Winners on the southern trading floor included Development Investment Construction Joint Stock Corporation (DIG), Hoang Anh Gia Lai Joint Stock Company (HAG), and Ho Chi Minh City Securities Corporation (HCM).

Chang Yih Ceramic Joint Stock Company (CYC), which resumed trading today after calling halt on June 17, plunged 17.95 percent to close at VND3,200.

Vietnam Container Shipping Joint Stock Company (VSC) capped its three-day rising streak, cutting 5.78 percent to VND31,000. The company will pay dividends to its current shareholders in cash at a ratio of 20 percent on September 21.

Viky Plastic Joint Stock Company (VKP) shrank 5.26 percent to VND1,800.

The HNX-Index of the smaller bourse in the north rebounded to above 70 points after standing below this level for more than one month. The gauge of 386 stocks also jumped 2.08 points, or 3 percent, to close at 71.33 points. Trading on the northern trading floor improved by 77percent in volume and 68 percent in value over the previous trading session as 53.43 million shares were traded at VND581.72 billion

Meanwhile, the UPCoM-Index of unlisted shares stripped 0.58 percent, or 0.18 points, to close 30.62 points. A total of 350,100 shares changed hands at a value of VND2.48 billion at 1:50 pm local time.

By Ngoc Thien

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