Stocks rebounded on Oct. 6 with over 60 percent of codes posting gains on both national stock exchanges, as many investors moved to grab undervalued shares following a long losing streak.
The State Bank of Vietnam's message to commercial banks and other credit institutions on Oct. 6, ordering them to cut lending interest rates to 17-19 percent per year, also helped stir up a dormant stock market.
The central bank also said it will apply stronger measures to stabilise the gold market and continue to sell dollars to banks to ease pressures on the foreign exchange rate. It gave assurances that commercial banks will continue to be able to access open market operations to help increase liquidity.
On the HCM Stock Exchange, the VN-Index rose 1 percent to close the session at 421.32 points. The value of trades climbed by about 11 percent over the previous day's session to over 663 billion VND (32 million USD) on a volume of more than 39 million shares.
Advancers outnumbered decliners by five times.
Blue chips recovered after several sluggish sessions. Both real estate developer Vincom (VIC) and dairy giant Vinamilk (VNM) rose by 1.6 percent, while insurer Bao Viet Holdings (BVH), and real estate developer Hoang Anh Gia Lai (HAG), Vietinbank (CTG) all saw gains of less than 1 percent.
Of the 10 leading shares by capitalisation, only software giant FPT declined, closing off by about a percent.
Becamex Infrastructure Development Co (IJC), with 1.6 million shares traded, became the most-active stock, hitting its ceiling price of 11,200 VND per share.
On the Hanoi Stock Exchange on Oct. 6, the HNX-Index increased by 2.5 percent, closing at 72.10. Value improved slightly to 368.8 billion VND (17.7 million USD), with over 36 million shares traded. Gainers overwhelmed losers by 218-51.
VNDSecurities was again the most-active share nationwide, with nearly 3.8 million changing hands. It closed at its ceiling price of 11,900 VND.
Foreign investors, meanwhile, remained net sellers on both bourses on Oct. 6, but by a narrow net margin of just 92 billion VND (4.4 million USD).