Improved investor mood boosts markets

Hanoi (VNA) - Vietnamese shares extended gains on June 29 as investors were in a better mood and oil prices continued recovering from a dive after Britain’s choice to leave the European Union.

The benchmark VN Index on the HCM Stock Exchange rose 1.3 percent to finish at 630.12 points, totalling a three-day rally of 1.5 percent from the slump on June 24.

The HNX Index on the Hanoi Stock Exchange added 1 percent to close the trading session at 84.74 points, rebounding 1.4 percent in the last two days.

“Local markets continued to recover from the June 24 plunge as investor confidence became more steady, and sell-offs are unlikely to happen again,” Sai Gon-Hanoi Securities Corp (SHS) wrote in its daily report.

“Blue chips had a positive trading day, proving that Vietnam’s stocks were making good progress in spite of the country’s lower year-on-year GDP growth in the first half of the year.”

Investor confidence was also bolstered as local analysts said that the markets over-reacted to the UK’s choice to leave the EU, and investors exaggerated their fears over what might happen to stock markets.

A stronger British pound versus the US dollar also helped Vietnam’s central bank cut its daily reference mid-point rate by 6 to 21,882 VND for a dollar.

Local banks were able to trade the Vietnamese dong and the dollar within a trading band of 3 percent on either side of the mid-point rate.

Property and retail company Vingroup JSC (VIC), insurer Bao Viet Holdings (BVH) and the three largest listed banks – Vietcombank (VCB), Vietinbank (CTG) and the Bank for Investment and Development of Vietnam (BID) – were major factors that boosted the southern bourse.

VIC and BID edged up 0.6 percent each, BVH rose 1.7 percent, VCB gained 1.9 percent and CTG increased by 2.4 percent.

On the northern exchange, Vicostone JSC (VCS), Tien Phong Plastic JSC (NTP), insurer PVI Holdings (PVI) and Vietnam Construction and Import-Export Corp (VCG) advanced between 1.4 percent and 8.1 percent.

Additionally, listed energy firms rose after oil prices advanced for a second day after plunging on June 24. London-traded Brent crude was traded at 49.03 USD a barrel, up 0.9 percent from June 29. Brent crude has jumped 4 percent in the last two days.

The largest energy firms that increased were PetroVietnam Gas Corp (GAS), PetroVietnam Technical Service Corp (PVS) and PetroVietnam Mud Drilling Corp (PVC).

Investors exchanged 171.4 million shares worth 3.47 trillion VND (154 million USD), an increase of one-third from the June 29 trading value.-VNA