Petrol price cut, bond sale boost markets

November 08, 2014 | 09:26

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The ninth petrol price reduction this year and the successful sale of Government bonds worth US$1 billion on the international market provided much-needed support for domestic stock markets yesterday.

An investor monitors shares at Vietcombank Securities Co. Domestic stock markets climbed yesterday thanks to the ninth petrol price reduction this year and the successful sale of Government bonds worth US$1 billion on the international market. - VNS Photo Truong Vi

The bond sale has reaffirmed Viet Nam's economic recovery and growth outlook following the credit upgrade of reputable ratings agencies for the country.

At the HCM City Stock Exchange, the VN-Index extended Thursday's gains by adding 0.79 per cent to reach 602.59 points. Transaction value jumped by nearly 38 per cent compared with the previous session to about VND2.2 trillion ($103.7 million), as trading volume increased to 125.6 million shares.

Among the 30 largest stocks in terms of capitalisation and liquidity, only four retreated, including Eximbank, Kinh Do Confectionery, Ocean Group and PetroVietnam Drilling Services.

Meanwhile, exactly 17 blue-chip shares posted gains, notably steelmaker Hoa Phat by 2.7 per cent and private equity group Masan by 4.3 per cent. The VN30 Index tracking these blue chips rose by 0.82 per cent to reach 642.77 points.

At the Ha Noi Stock Exchange, the HNX-Index climbed by 0.26 per cent to reach 89.55 points on a total market value of VND654.5 billion ($30.8 million). The northern market's blue chips pushed the HNX30 up by 0.27 per cent to 180.13 points.

Trading was quite active because of real estate shares such as FLC Group, Hoang Anh Gia Lai and Kinh Bac Urban City, as well as Tan Tao, Duc Long Gia Lai and Tasco.

FLC led the two bourses in trading volume yesterday, rising by 5.4 per cent with nearly 23 million shares changing hands. Foreign investors bought 34,200 FLC shares.

Foreign investors increased their purchasing activities yesterday, and this is good news for investors in general. Buyers could consider taking the action now as shares showed sign of entering a new rally, according to FPT Securities.

VNS

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