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Vietnam shares up as US passes revised rescue plan
Domestic share prices went up slightly on Oct. 2, as a revised version of the US financial rescue plan was endorsed by the Senate.
The US Senate approved a 700 billion USD bailout of the financial industry, putting pressure on the House of Representatives to approve the plan that political and financial leaders called crucial to averting economic catastrophe.
The VN-Index gained 5.84 points or 1.29 percent to close at 460.25. Trading volume fell by 20 percent to 15.16 million shares, with a total value of 552.35 billion VND (33.47 million USD).
The HCM Stock Exchange saw 123 gainers and 26 losers at the end of the day.
Sacombank (STB) led the market in terms of trading volume with orders for 1.83 million shares. STB was followed by Vietnam Tanker Joint Stock Co (VTO) and Hoa Phat Group (HPG) with around 900,000 shares traded each.
Transaction levels for foreign investors were modest, with 933,000 shares bought and 2.75 million units sold. Net sales valued reached nearly 95 billion VND (5.75 million USD).
On the Hanoi Securities Trading Centre, the HASTC-Index closed at 152.96 after increasing 3.26 points or 2.18 percent on the day. Trading volume fell slightly to about 10.5 million shares with a total revenue of 352.2 billion VND (21.35 million USD).
Kim Long Securities (KLS) showed the most action on the northern bourse, with 1.32 million shares traded. This was followed by Asian Commercial Bank (ACB) with about 800,000 shares and Petroleum Technical Services Corp (PVS) with about 720,000 units. Some domestic moves also helped stock indexes rebound.
Three leading local petroleum importers including the Vietnam National Petroleum Corporation (Petrolimex), cut their kerosene prices on Wednesday by 1,000 VND to 17,000 VND per litre, following the Ministry of Finance’s approval.
Petrolimex said the cut in retail prices for kerosene was to support production activities, as world oil prices had declined significantly to around 100 USD per barrel. Meanwhile, banks have given lending incentives to small-and medium-sized enterprises (SMEs) and exporters to boost the private sector market during difficult economic times.
The Bank for Investment and Development of Vietnam (BIDV) offered SMEs an annual rate of 17.8 percent starting Wednesday, compared to an average lending rate of 18 percent amongst commercial banks; while ACB decided to reserve 2 trillion VND (121.2 million USD) for lending to private enterprises and household businesses.
Ngo Van Minh, Director of Euro Capital Securities’ Analysis Department commented on the potential effects of the 700 billion USD bailout plan, saying it would help stabilise the financial arena, but would not be able to help the US economy recover yet.
The latest economic indexes for the US showed that the world’s leading economy was on the edge of recession, he added.
VNA
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