HCM City stocks failed to retain earlier gains yesterday, while shares in the capital city managed a feeble rally.
HA NOI —
On the HCM City Stock Exchange, the VN-Index fell 0.13 per cent to 427.61 points. Over 84 million shares were traded, however, an increase of over 42 per cent over the previous session. The value of trades jumped by a whopping 71.8 per cent to VND1.4 trillion (US$68.5 million).
The VN30 Index, tracking the market's leading shares in terms of capitalisation and liquidity, also dropped by around 0.5 per cent, closing at 504.19 points. Of the 30 stocks tracked by the VN30, only Phu My Fertilisers (DPM), logistics firm Gemadept (GMD), Phu Nhuan Jewelry (PNJ), food processor Masan Group (MSN), financial conglomerate Ocean Group (OGC), and two banking stocks – Vietinbank (CTG) and Vietcombank (VCB) – managed gains.
Nhu Lan, an analyst for the financial information website vietstock.vn, pointed out three major reasons why banking shares might be regaining their dominant position on the market. First, the State Bank of Viet Nam has announced plans to handle remaining weak banks within the month.
"With these changes, the banking system is expected to be more stable and commercial banks will maintain healthy growth," Lan said.
Secondly, the credit ratings of such major banks as Vietinbank and the Bank for Investment and Development of Viet Nam have been lifted from "negative" to "stable."
"Third, banks have been bargaining power, so if deposit interest rates start to rise, they can easily increase lending interest rates," Lan said. This spread helped commercial banks retain profitability from credit operations.
On the Ha Noi Stock Exchange yesterday, the HNX-Index closed nearly unchanged at 74.76 points. Trading volume remained sluggish at around 37.6 million shares, worth a total of VND393.2 billion ($18.7 million).
With nearly seven million shares exchanged, PetroVietnam Construction Co (PVX) was continued as the most-active share nationwide. — VNS