Stocks set to rise further after Tet

Hanoi (VNS/VNA) - Vietnam’s stock market is expected to rise further after the Tet (Lunar New Year) holiday and even throughout 2018, boosted by positive macro economic development as well as support of foreign traders.

The benchmark VN-Index on the HCM Stock Exchange (HOSE) was up 1.7 percent to close February 13 at 1,059.73 points, totalling a two-day increase of 5.47 percent.

The HNX Index on the Hanoi Stock Exchange (HNX) edged up 1.88 percent to end at 124.31 points on February 13, making a two-day surge of 4.47 percent.

The UPCOM Index on the Unlisted Public Company Market (UPCoM) inched up 1.83 percent to finish at 58.5 points.

During the last trading day of the lunar year (February 13), the market rebounded strongly and remained positive throughout the trading day.

The market leaders were large-cap stocks of PetroVietnam Gas (GAS) (4.4 percent), Vingroup Joint Stock Company (VIC) (3 percent), Vietnam Joint Stock Commercial Bank for Industry and Trade (CTG) (3.8 percent), JSC Bank For Investment And Development Of Vietnam (BID) (2.6 percent) and Hoa Phat Group Joint Stock Company (HPG) (3.1 percent).

The laggards were Ho Chi Minh City Securities Corporation (HCM) (3.39 percent), Bank for Investment & Development of Vietnam Securities Company (BSI) (7 percent), Pharmaceutical Joint Stock Company (DHG) (4.8 percent) and PetroVietNam Low Pressure Gas Distribution JSC (PGD) (2.4 percent).

Foreign investors on February 13 were net sellers with 636.4 billion VND (28 million USD) on HOSE, focusing on HPG (164.8 billion VND), VRE (140.5 billion VND) and VRE (105.7 billion VND). In addition, they sold a net of 33 billion VND on the HNX.

According to Tran Van Dung, Chairman of the State Securities Commission (SSC), in 2017, Vietnam recorded impressive economic growth with many macro-economic indicators set by the Government being achieved.

It can be said the stable macroeconomic status is significantly supporting the stock market and will improve further thanks to the determination of the Government to act on many issues such as GDP growth, curbing inflation, accelerating equitisation and divestment, increasing foreign exchange reserves, Dung said.

The performance of listed companies also improved over 2016, he added.

Last year the Government issued Resolution 42/2017/QH14 on the settlement of non-performing loans to pilot the settling of the bad debt of credit institutions, demonstrating the determination of Vietnam’s Government to resolve the long-standing NPL issue.

This resulted in stable liquidity and interest rates, helping listed bankers improve significantly their financial quality, strongly dragging up the stock market.

Foreign investment inflows into Vietnam in 2017 surged sharply from 2016, which significantly contributed to drive up the stock market, Dung said, with net capital inflows of 2.9 billion USD, up 130 percent over 2016.

He also added that foreign investors were net buyers of 9.6 trillion VND in January and over 5 trillion VND in early February this year, strongly focusing on the sessions right before the Tet holiday.

According to BIDV Securities (BSC), the market’s recovery during the last two sessions has created good sentiment for the post-holiday period, causing investors to release new capital into the market.-VNA