Vietnam’s stock market is expected to rise further after the Tet (Lunar New Year) holiday (Photo: baodautu.vn)Hanoi (VNS/VNA) - Vietnam’sstock market is expected to rise further after the Tet (Lunar New Year) holidayand even throughout 2018, boosted by positive macro economic development aswell as support of foreign traders.
The benchmark VN-Index onthe HCM Stock Exchange (HOSE) was up 1.7 percent to close February 13 at1,059.73 points, totalling a two-day increase of 5.47 percent.
The HNX Index on the HanoiStock Exchange (HNX) edged up 1.88 percent to end at 124.31 points on February13, making a two-day surge of 4.47 percent.
The UPCOM Index on theUnlisted Public Company Market (UPCoM) inched up 1.83 percent to finish at 58.5points.
Duringthe last trading day of the lunar year (February 13), the market reboundedstrongly and remained positive throughout the trading day.
The marketleaders were large-cap stocks of PetroVietnam Gas (GAS) (4.4 percent),Vingroup Joint Stock Company (VIC) (3 percent), Vietnam Joint StockCommercial Bank for Industry and Trade (CTG) (3.8 percent), JSC Bank ForInvestment And Development Of Vietnam (BID) (2.6 percent) and Hoa PhatGroup Joint Stock Company (HPG) (3.1 percent).
Thelaggards 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 LowPressure Gas Distribution JSC (PGD) (2.4 percent).
Foreigninvestors on February 13 were net sellers with 636.4 billion VND (28 millionUSD) on HOSE, focusing on HPG (164.8 billion VND), VRE (140.5 billion VND) andVRE (105.7 billion VND). In addition, they sold a net of 33 billion VND on theHNX.
Accordingto Tran Van Dung, Chairman of the State Securities Commission (SSC), in 2017, Vietnamrecorded impressive economic growth with many macro-economic indicators set bythe Government being achieved.
It can besaid the stable macroeconomic status is significantly supporting the stockmarket and will improve further thanks to the determination of the Governmentto act on many issues such as GDP growth, curbing inflation, acceleratingequitisation and divestment, increasing foreign exchange reserves, Dung said.
Theperformance of listed companies also improved over 2016, he added.
Last yearthe Government issued Resolution 42/2017/QH14 on the settlement ofnon-performing loans to pilot the settling of the bad debt of creditinstitutions, demonstrating the determination of Vietnam’s Government toresolve the long-standing NPL issue.
Thisresulted in stable liquidity and interest rates, helping listed bankers improvesignificantly their financial quality, strongly dragging up the stock market.
Foreigninvestment inflows into Vietnam in 2017 surged sharply from 2016, whichsignificantly contributed to drive up the stock market, Dung said, with net capitalinflows of 2.9 billion USD, up 130 percent over 2016.
He alsoadded that foreign investors were net buyers of 9.6 trillion VND in January andover 5 trillion VND in early February this year, strongly focusing on thesessions right before the Tet holiday.
According to BIDVSecurities (BSC), the market’s recovery during the last two sessions hascreated good sentiment for the post-holiday period, causing investors to releasenew capital into the market.-VNA
VNA
