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New decree lifts sentiment, extends market rally
Vietnamese shares rebounded on Monday as market sentiment remained positive, following a new decree released last week to cut tax for virus-hit businesses.
The benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) was up 0.47 per cent to 912.50 points, bouncing back from a two-day decline of total 0.46 per cent.
The VN-Index gained a total of 0.81 per cent last week.
Prime Minister Nguyen Xuan Phuc on Friday officially issued Decree 114/2020/ND-CP to cut income tax for businesses that report total revenue of less than VND200 billion (US$8.64 million) in 2020.
Such information helped lifted investors’ confidence in local stocks.
Large-cap tracker VN30-Index rose 1.01 per cent to 863.31 points with 16 of the 30 largest stocks by market value and trading liquidity rising.
The mid-cap and small-cap trackers on HoSE on Monday increased by 0.79 per cent and 0.67 per cent, respectively.
Banks, securities companies and retailers were the driving factor of the stock market on Monday.
The three sector indices rose 1.2 per cent, 2.2 per cent and 2.4 per cent, respectively, according to vietstock.vn.
Large-cap stocks in the three industries all grew, such as retail firm Mobile World Investment (MWG), Vietinbank (CTG), VPBank (VPB), Techcombank (TCB), SSI Securities (SSI), HCM City Securities (HCM), and VNDirect Securities (VND).
In the banking sector, Sacombank (STB) jumped 3.8 per cent on Monday and the stock was also the most active on the southern bourse with nearly 29 million shares being traded.
Sacombank shares have soared total 36.6 per cent since July 31 on speculations that Truong Hai Auto Corporation (Thaco) will soon buy the bank’s stake.
Though the two sides have denied such information, investors still hope that the deal will be realised someday, thus extending the bank’s stock rally, according to Vietinbank Securities Co’s analysis director Dao Tuan Trung.
On the negative side, foreign investors remained net sellers. They sold a net value of nearly VND390 billion, up nearly 191 per cent from Friday’s figure.
“Domestic purchasing power is backing up the market against the strong, prolonged net-selling by foreign investors,” Thanh Cong Securities Co (TCSC) said in its daily report.
“That proves investors are highly expecting the market will keep increasing in the near future,” the company said. “The VN-Index may quickly touch 920-930 points in the coming days.”
On the Ha Noi Stock Exchange, the HNX-Index advanced 1.22 per cent to 133.12 points on Monday.
The northern market index gained a total of nearly 1.8 per cent last week.
Nearly 480 million shares were traded on the two exchanges, worth VND8.06 trillion ($348 million).
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