VN stocks up before Brexit decision

Vietnamese shares advanced yesterday as investors were upbeat on expectations that the Vietnamese economy would not suffer much from Britain's exit of the European Union (EU). - VNA/VNS Photo

The benchmark VN Index on the HCM Stock Exchange rebounded 0.9 per cent to finish at 632.27 points after sliding 0.3 per cent on Wednesday.

The HNX Index on the Ha Noi Stock Exchange rose 0.6 per cent to rally 1.7 per cent in the last four trading days.

Investor confidence was bolstered as local economists believed that Viet Nam's economy would suffer little from Britain's exit from the EU.

"Viet Nam will not suffer much from Britain's exit of the EU as the country is a small trade partner of Britain with a good political relationship and a very small amount of foreign direct investment projects in the country come from British companies," Nguyen Mai, chairman of the Viet Nam Association of Foreign Invested Enterprises said.

Additionally, emerging markets in the Asia-Pacific region, including Viet Nam, will remain at the centre of the world's economic development, and draw financial capital from the European markets if Britain leaves the EU, Maritime Securities Inc wrote in a report.

On the southern market, insurer Bao Viet Holdings (BVH), property and retail firm Vingroup JSC (VIC), Vietcombank (VCB), Vietinbank (CTG) and the Bank for Investment and Development of Viet Nam (BID) saw gains.

BVH went up 0.8 per cent, VIC added 1 per cent, VCB increased by 2.6 per cent, and CTG was up 1.8 per cent, with BID edging up 0.6 per cent.

Dairy firm Vinamilk (VNM) gained 0.7 per cent as the company will sell about 9.44 million shares to its employees for a price of VND37,720 (US$1.67) per share, a quarter of the share price. VNM shares closed yesterday at VND140,000.

On the northern market, large-cap stocks that made gains included stone-maker Vicostone JSC (VCS), Tien Phong Plastic JSC (NTP), Si Gin-H Noi Bank (SHB), and Viet Nam Construction and Import-Export JSC (VCG).

Pharmaceutical companies recorded the biggest gains yesterday on expectations that they may perform well in the second quarter and allow foreign investors to raise ownership, and on expectations that the State will make divestments from those companies, analysts told local media.

Among those companies, Ha Tay Pharmaceutical JSC (DHT) and Lam Dong Pharmaceutical JSC (LDP) surged 8.6 per cent and 9.2 per cent, respectively, while Domestic Medical Import-Export JSC (DMC) jumped 4.4 per cent, and DHG Pharmaceutical JSC (DHG) surged 6.2 per cent.

Investors yesterday exchanged more than 168.4 million shares worth VND3 trillion, an increase of 5 per cent from Wednesday's trading value.