Stocks rose for the second straight day on improved trading volume and value on both stock exchanges as investors were more confident on buying.

Following Vietcombank (VCB), Vietinbank (CTG) and Agribank, Sai Gon-Hanoi Bank (SHB) and BIDV are the latest banks to reduce interest rates on all of their loans to 15 percent per year from July 15, following the guidance by Governor of State Bank of Vietnam Nguyen Van Binh.

Late last week, Binh required banks to cut their lending rates, including rates charged on their old loans, to 15 percent per year from July 15 in bid to bring down the current lending rate.

Analysts of SHB Securities Co said the consensus of banks in reducing the lending rate would help ease the burdens of enterprises.

On the HCM City 's bourse, the benchmark VN-Index gained another 0.35 per cent to close the session at 408.72 points. Market value nearly doubled from a day earlier to 661 billion VND (31.5 million USD) on a total volume of over 43.5 million shares.

Advancers outnumbered decliners by 162-52, led by blue chips. Amongst the top 30 shares by market capitalisation and liquidity, 18 climbed, only three sank and nine closed unchanged.

The VN30 Index thereby increased 0.31 percent to 483.12 points.

Tan Tao Investment - Industry Corporation (ITA) was the most active stock with 2.1 million shares changing hands, rising over 3 percent to end at 6,800 VND.

On the Hanoi Stock Exchange, the HNX-Index grew by a more substantial 1.06 percent to finish on July 12 at 69.32 points on a total turnover of 294.7 billion VND (14 million USD), up 50 percent over July 11.

Most shares tracked by the HNX30 climbed strongly, pushing the Index up 2.06 percent to 130.92 points.

Furniture maker Dai Chau Group (DCS) and IDJ International Financial Investment and Enterprise Development (IDJ) hit the ceiling prices, while VNDirect Securities, property developers Sacomreal (SCR), Petro Dong Do (PFL) and Song Da Infrastructure Construction (SDH) almost rose to the ceiling.

Gainers overwhelmed losers by 180-51 overall.

VNDirect Securities Co (VND) continued to be the most active stock in Hanoi on a total trade of 3.6 million shares, climbing 4.3 percent to settle at 9,800 VND.

Foreign investors became net sellers on both exchanges, unloading combined shares worth 20 billion VND (952,000 USD).-VNA