Both leading stock indices surged on July 5, with two-thirds of shares advancing on both national stock exchanges as investors reacted positively to the central bank’s move to lower the interbank lending rate.
The State Bank of Vietnam on July 4 decided to lower the interest rates charged in open market operations from 15 percent to 14 percent per year, and market insiders believe the rate cut – the first in seven months – is a sign of lossening of the tight credit policy that has crippled the stock market.
Analysts with ACB Securities Co predicted that lending interest rates charged by commercial banks could follow suit and decline in the near future.
“The central bank’s moves, together with the income tax exemption for income and capital gains from securities investment, will cheer up investors over the next few sessions,” they wrote in a market report.
Analysts with financial website vietstock.vn cautioned, however, that monetary policy would continue to be a trade-off between short-term goals (lower interest rates, looser credit, growth) and long-term stability (lower inflation).
On the HCM Stock Exchange, the VN-Index rose 1.32 percent to close at 431.03 points on July 5. The value of the day’s trades dropped 7 percent, however, to 390.96 billion VND (19 million USD), on a volume of 25.4 million shares.
On the Hanoi Stock Exchange, the HNX-Index climbed 1.78 percent to close at 73.31 points. Market value jumped by 55 percent over the previous session to 330.9 billion VND (16 million USD) as 29.2 million shares changed hands.
Foreign investors concluded on July 5 as net sellers on both exchanges, unloading a combined net of 15 billion VND (728,000 USD) worth of shares./.
The State Bank of Vietnam on July 4 decided to lower the interest rates charged in open market operations from 15 percent to 14 percent per year, and market insiders believe the rate cut – the first in seven months – is a sign of lossening of the tight credit policy that has crippled the stock market.
Analysts with ACB Securities Co predicted that lending interest rates charged by commercial banks could follow suit and decline in the near future.
“The central bank’s moves, together with the income tax exemption for income and capital gains from securities investment, will cheer up investors over the next few sessions,” they wrote in a market report.
Analysts with financial website vietstock.vn cautioned, however, that monetary policy would continue to be a trade-off between short-term goals (lower interest rates, looser credit, growth) and long-term stability (lower inflation).
On the HCM Stock Exchange, the VN-Index rose 1.32 percent to close at 431.03 points on July 5. The value of the day’s trades dropped 7 percent, however, to 390.96 billion VND (19 million USD), on a volume of 25.4 million shares.
On the Hanoi Stock Exchange, the HNX-Index climbed 1.78 percent to close at 73.31 points. Market value jumped by 55 percent over the previous session to 330.9 billion VND (16 million USD) as 29.2 million shares changed hands.
Foreign investors concluded on July 5 as net sellers on both exchanges, unloading a combined net of 15 billion VND (728,000 USD) worth of shares./.
