|
HCMC market rises on rate cut rumors, foreign buying
Ho Chi Minh City stocks rose further Thursday as foreigners turned buyers and investors were upbeat about a rumored steep cut in the central bank’s key rate.
The VN-Index closed at 305.56 points, a gain of 4.54 points or 1.51 percent, and trading volume rose to 12.2 million shares. Of its 173 members, 77 advanced and 50 declined.
Nguyen Hai Son, a broker at FPT Securities, said sentiment was up following rumors that the State Bank of Vietnam would slash its prime rate from 10 percent to 7 percent.
The bank cut the key rate, which guides deposit and lending interest rates, for the fourth time in six weeks as the global financial crisis undermines growth.
“Buoyancy was also restored by heavy buying from foreign investors. Institutional investors started returning to the market after standing on the sideline for many sessions,” Son said.
But he expects the index to hover around the 300 mark. “The market has support at 300 but will struggle to break out because investors remain cautious,” he said, adding the market trend would become clearer after the state-owned Vietinbank’s initial public offering (IPO) later this month.
The country’s fourth-largest lender by assets said Friday it plans to raise at least US$65 million by selling 4 percent of its total capital through the IPO on December 25 at the Ho Chi Minh Stock Exchange.
Vietnam Bank for Industry and Trade has set a minimum bid price of VND20,000 for its 53.6 million shares.
Foreign investors bought VND4.4 billion ($259,000) worth of stocks, with PetroVietnam Chemical and Fertilizer Joint Stock Co., Pha Lai Thermal Power and dairy maker Vinamilk being their top three picks.
Hoang Uy
Thanh nien
|
