Vietnamese stocks up for a second day

Vietnamese shares on July 13 extended gains for a second session as investors became highly confident after a decision was made by the PCA to reject China’s territorial claim over the East Sea.

An investor places a trading order at B​ao Vi​et Securities Corp. (Photo:VNA)

Hanoi (VNA) - Vietnamese shares on July 13 extended gains for a second session as investors became highly confident after a decision was made by the Permanent Court of Arbitration (PCA) to reject China’s territorial claims over the East Sea.

The benchmark VN Index on the HCM Stock Exchange advanced 2.5 percent – the highest rise in the last 12 weeks - to finish at a nine-year high of 675.12 points. The southern market index has jumped 3.5 per cent in the last two days.

The HNX Index on the Ha noi Stock Exchange ended at 87.38 points, up 1.2 percent from the previous session. The northern market index has climbed 1.6 percent in two trading days.

Investor confidence was bolstered after the PCA on July 12 rejected China’s territorial claims in the East Sea.

“Investors reacted positively to the PCA’s ruling,” Saigon-Hanoi Securities Corp (SHS) wrote in its market daily report. Higher investor confidence helped markets rise for a second day.

Banks were the strongest gainers, led by the Joint Stock Commercial Bank for Foreign Trade of Vietnam (VCB) and Vi e t n am Joint Stock Commercial Bank for Industry and Trade (CTG) and the Bank for Investment and Development of Vietnam (BID) after these three banks announced year-on-year increases in their second-quarter profits, Bao Viet Securities Corp (BVSC) wrote in its daily report.

Foreign purchases also helped boost those bank stocks, BVSC said. Foreign buying accounted for half of the trading volume in VCB and a quarter of the trading volume in CTG.

VCB surged 6.5 percent to reach the highest-ever price, CTG added 6.8 percent and BID jumped 3.9 percent. VCB has soared 24.4 percent since June 27 and CTG has jumped 14.5 percent since June 28.

Strong gains in VCB, CTG and BID also dragged other banks up such as Vi e t n am Export Import Joint Stock Commercial Bank (EIB) and Asia Commercial Bank (ACB).

Other blue chips also made good gains, including insurer B a o Vi e t Holdings (BVH), Saigon Securities Inc (SSI) and property developer Vingroup JSC (VIC).

Vietnam’s central bank on July 13 raised its daily reference mid-point rate by 10 VND to 21,879 VND for a US dollar, totaling a two-day gain of 24 VND.

Investors exchanged more than 241.6 million shares worth 4.58 trillion VND (203.6 million USD), an increase of 13.2 percent from the previous session.-VNA

VNA