VN-Index hits 13-month high

By Hung Le   November 4, 2019 | 06:45 am PT
VN-Index hits 13-month high
People walk past the stock exchange centre in Hanoi. Photo by Reuters/Kham.
The benchmark VN-Index rose 0.67 percent to 1022.43 points on Monday, the highest level since October 4 last year, led by blue chips and banks.

Although there were only 145 gainers compared to 185 losers by the end of Monday’s session, strong growth in most blue-chip and banking sector stocks propelled the VN-Index to its second consecutive gaining session.

The VN-Index represents stocks listed on the Ho Chi Minh Stock Exchange (HoSE), which accounts for around 90 percent of total market cap on all of Vietnam’s exchanges.

The VN-30, which represents the 30 highest market cap companies on HoSE, rose 0.72 percent, with 17 gainers and 9 losers. Two of its biggest gainers were VCB and BID stocks of Vietcombank and BIDV, two of Vietnam’s three biggest state-owned lenders by assets, which rose 3.6 and 2.93 percent respectively.

PNJ shares of Phu Nhuan Jewelry JSC, a leading jewelry maker, rose 2.3 percent, followed by FPT shares of IT giant FPT that rose 1.4 percent, and GAS shares of state-owned oil and gas corporation PetroVietnam Gas JSC, up 1 percent.

In the banking sector, TCB shares of Techcombank, Vietnam’s biggest private bank, rose 2.53 percent. Among mid-sized lenders, VPB shares of VPBank, up 2.33 percent, and MBB shares of Military Bank, up 1.53 percent, led the way.

However, HoSE’s two biggest market cap stocks, VIC of Vietnam’s largest private conglomerate Vingroup and VRE of the former’s real estate arm Vinhomes, fell 0.8 and 0.15 percent respectively.

Stocks of food and beverage, construction, natural resources and chemical sectors on average lost the most this session, according to consolidated data from Viet Dragon Securities (VDSC).

Foreign investors were net buyers this session, at VND66 billion ($2.84 million), with buying orders focused on blue-chips such as VCB and VRE.

According to MBS Securities, growth in the VN-Index followed positive regional sentiment after U.S. Commerce Secretary Wilbur Ross said last Friday that an initial "phase one" trade pact with China appears to be in good shape and is likely to be signed around mid-November.

The phase one deal is expected to include China buying more agricultural products from the U.S. and further open up its financial services markets to American firms, in return for the U.S. cancelling a new round of tariffs on a range of Chinese goods that will take effect on December 15.

By the end of Monday session, China’s Shanghai Composite and Shenzhen Composite rose 0.58 percent and 0.67 percent respectively. Hong Kong’s Hang Seng Index increased 1.75 percent, South Korea’s Kospi 1.43 percent, and Thailand’s SET Index rose 1.87 percent.

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