Stocks fall, gold continues to escalate

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Vietnam’s benchmark VN-Index slumped nearly 56 points or 6.28 percent on March 3, the highest drop since October 3, 2001 as Asian stock markets flooded in red due to a record decline of more than 30 percent in the global oil price and unexpected developments of the Covid-19 outbreak.
The HNX-Index of the smaller bourse in the North also slashed 7.32 points or 6.44 percent to 106.34 points with 148 stocks declining, of which 61 stocks hit the bottom, 29 increasing while 32 remaining unchanged. Market liquidity was maintained at a high level with total trading volume on both trading floors reaching 378 million shares, worth VND6.5 trillion.

Meanwhile, the global bullion price exceeded US$1,700 an ounce, sending the price of gold in Vietnam to pass VND48 million per tael in the morning on March 9. At 4 p.m., the domestic gold price slight retreated. Saigon Jewelry Company bought gold at VND47.2 million per tael and sold at VND47.9 million per tael, an increase of VND400,000 per tael in buying rate and VND600,000 per tael in selling rate.

At the same time in Hanoi, Bao Tin Minh Chau Company purchased gold at VND47 million per tael and sold at VND47.85 million per tael.

Gold for immediate delivery in the global market rose $24.6 an ounce to $1,697.63 an ounce. The precious metal fluctuated from $1,673.1 to $1,704 an ounce in the trading session. After conversion, the global gold price was at VND47.5 million per tael, lower than domestic price by VND500,000 per tael.

Another factor that benefits the yellow metal is that the US Federal Reserve cut its benchmark interest rate last week and some other central banks will also reduce their interest rates in an attempt to minimize economic losses. Experts forecast that the price of gold might hit up to $1,736 an ounce in April this year.

On the foreign currency market, the US dollar exchange rate against the Vietnamese dong did not change much. The reference exchange rate announced by the State Bank of Vietnam was at VND23,195 per dollar, down VND2 per dollar compared to last weekend. Accordingly, the dollar exchange rates at commercial banks slid by VND10 per dollar to trade around VND23,090 per dollar for buying and VND23,120 per dollar for selling.

By Nhung Nguyen – Translated by Thuy Doan

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