Stocks rebounded from nearly two-month lows as the central bank announced a reduction in the deposit interest rates ceiling from October 30 onwards.

The market was still sluggish in the morning. However, news of the deposit rate cut lifted investor sentiment.

The State Bank of Vietnam on October 28 decided to cut the ceiling rates on short-term Vietnamese dong deposits from 6 percent to 5.5 percent and dollar deposits from 1 percent to 0.75 percent.

On the Hochiminh Stock Exchange, the benchmark VN-Index closed at 583.13 points, an increase of 0.40 percent over October 27. Meanwhile, the VN30, which tracks the top 30 shares by market value and liquidity, improved 0.62 percent to end at 618.99 points.

Ocean Group (OGC) slumped 6.86 percent to settle at 9,500 VND a share on October 28. It remained the most active code with 14.6 million shares.

Liquidity continued to improve as both market volume and value rose above 10 percent over the previous session, totaling 116.5 million shares worth 1.932 trillion VND (91.6 million USD).

On the Hanoi Stock Exchange, the HNX-Index grew by a more substantial 1.07 percent to finish the session at 85.27 points.

The market volume decreased 11 percent to reach 52.4 million shares while value of trades dropped 16 percent to 656 billion VND (31.1 million USD).

KLF Joint Venture Global Investment Co (KLF) and PetroVietnam Construction Corp (PVX) led the market volume on October 28 with each having over 6 million shares traded.

KLF rose 0.93 percent to close at 10,900 VND per share while PVX soared 7.27 percent to end at 5,900 VND each.

Foreign investors became net buyers on both exchanges, picking up combined shares worth 37.3 billion VND (1.8 million USD).-VNA