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Interbank rate cut cheers stock markets
Both leading stock indices surged on 05 July, with two-thirds of shares advancing on both national stock exchanges as investors reacted positively to the central bank's move to lower the interbank lending rate.
The State Bank of Viet Nam on Monday decided to lower the interest rates charged in open market operations from 15 per cent to 14 per cent per year, and market insiders believe the rate cut – the first in seven months – is a sign of lossening of the tight credit policy that has crippled the stock market.
Analysts with ACB Securities Company predicted that lending interest rates charged by commercial banks could follow suit and decline in the near future.
"The central bank's moves, together with the income tax exemption for income and capital gains from securities investment, will cheer up investors over the next few sessions," they wrote in a market report.
Analysts with financial website vietstock.vn cautioned, however, that monetary policy would continue to be a trade-off between short-term goals (Lower interest rates, looser credit, growth) and long-term stability (lower inflation).
On the HCM City Stock Exchange, the VN-Index rose 1.32 per cent to close yesterday at 431.03 points. The value of the day's trades dropped 7 per cent, however, to VND390.96 billion (US$19 million), on a volume of 25.4 million shares.
Advancers outnumbered decliners by 183-47, with more than 60 codes hitting their ceiling prices, including such blue chips as financial conglomerate Ocean Group (OGC), Kinh Bac Urban Development (KBC), Becamex Infrastructure Development (IJC) and Saigon Securities Inc (SSI), with the latter being the most-active stock on a volume of 1.8 million shares.
On the Ha Noi Stock Exchange, the HNX-Index climbed 1.78 per cent to close at 74.31 points. Market value jumped by 55 per cent over the previous session to VND330.9 billion ($16 million) as 29.2 million shares changed hands.
Kim Long Securities Company (KLS) continued to be the most-active share nation-wide, with 3.7 million traded.
Foreign investors concluded yesterday as net sellers on both exchanges, unloading a combined net of VND15 billion ($728,000) worth of shares.
vietnamnews
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