Staff follow transactions at Bao Viet Securities Company in Hanoi. (Photo:VNA) Hanoi (VNA) - Vietnamese shares rebounded on January 19 from a recent slump as investor confidence was buoyed by optimism that the slowdown of the Chinese economy may spur stimulus measures.
The benchmark VN Index on the HCM Stock Exchange gained 1.8 percent to close at 535.77 points after a four-day loss of 6.7 percent.
The HNX Index on the Hanoi Stock Exchange rose 1.4 percent to end at 74.30 points. The northern index had lost 4.4 percent in the previous three sessions.
China announced on January 19 that its gross domestic product expanded 6.8 percent in the fourth quarter, the lowest growth rate since 2009. Equities in Shanghai and Shenzhen jumped more than 3 percent as investors bet the Chinese government will implement fresh public spending and other measures to fuel growth.
China is Vietnam's largest trade partner and sharp moves in its stocks and currency often reverberate in local markets.
The recent drop in markets had also made stock prices more attractive, Sai Gon-Hanoi Securities (SHS) wrote in its report.
Large-cap stocks, including banks and insurance firms, benefited the most from higher investor confidence. The banking sector index and the insurance sector index jumped 3.3 percent and 3.8 percent, respectively.
Among banks, Vietcombank (VCB) gained 4.4 percent after having fallen 13 percent since the end of last year, Vietinbank (CTG) rose 3.6 percent after dropping 6.5 percent, and the Bank for Investment and Development of Vietnam (BID) climbed 3 percent after losing 18 percent.
The insurance sector was lifted by Bao Viet Holdings (BVH), which surged 5 percent, and PVI Holdings (PVI), which jumped 3.5 percent. BVH had lost 11.3 percent since the end of last year and PVI had dropped 9.7 percent.
Rising demand for cheaper stocks also helped boost other sectors such as the property sector, the food and beverage sector and the information technology sector.
The gains in these sectors were led by food and beverage firm Masan Group (MSN), which was up 1.4 percent, property developer FLC Group (FLC), which jumped 4.8 percent and software provider FPT Corporation (FPT), which gained 0.5 percent.
On January 19, Vietnam's central bank cut its reference mid-point rate for US dollar exchange trading band by 7 VND to 21,906 VND. The bank allows investors to trade the dollar up to 3 percent on either side of the mid-point. On the unofficial exchange market, one dollar was traded for 22,520 VND.
The stock markets traded more than 164 million shares worth nearly 2 trillion VND (88.3 million USD), a decrease of more than one-third from the previous day’s trading value.-VNA
