Interest rate hopes boost City stocks

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VietNam News English - 24 month(s) ago 1 readings

On the Ha Noi Stock Exchange yesterday, the HNX-Index rose by 0.4 per cent to 74.36 points, boosted by information that deposit interest rates would be reduced to as low as 9 per cent per year to facilitate banks in offering lower commercial lending rates and ease difficulties for businesses.

HA NOI —

The announcement followed a meeting between the State Bank of Viet Nam and 14 commercial banks late on Thursday.

Meanwhile, inflation in June was predicted to continue at a low rate of just 0.1-0.2 per cent.

Despite gains, trading on the northern bourse remained sluggish yesterday, with only 31.4 million shares traded, worth only VND315.4 billion (US$15 million) – a decrease of around 28 per cent in both value and volume compared to Thursday.

On the HCM City Stock Exchange, stocks finally tumbled after posting gains for most of yesterday's trading hours. The VN-Index concluded the session nearly unchanged from Thursday's close at 428.80 points.

The value of trades soared by nearly 78 per cent over the previous day's total, however, reaching VND1.3 trillion ($61.9 million) on a volume of nearly 72.2 million shares.

Nearly half of the 30 leading shares tracked by the VN30-Index retreated, with commercial bakery Kinh Do (KDC) dropping to its floor price of VND37,100 per share. The VN30-Index overall shed 0.3 per cent to 505.65 points.

Beginning next week, afternoon trading hours would be shifted to 1:30-3pm instead of the current 1-2:15pm.

"Since it relates to technical problems in clearing transactions, trading times will be adjusted once the T+3 settlement period is applied," said the head of the State Securities Commission's market development division, Nguyen Son, in an interview with the publication Dau tu Chung khoan (Securities Investment).

Such a distribution of time would attract new investors who are unable to participate in the market during morning trading, he said.

"In addition, it will help overcome the problems of time zone differences between Viet Nam and other countries, creating more favourable conditions for foreign investors to monitor market movements." — VNS

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