Vietnam Law & Legal Forum Magazine is your gateway to the law of Vietnam

Official Gazette

Saturday, October 24, 2020

New decree lifts sentiment, extends market rally

Updated: 15:09’ - 29/09/2020
Vietnamese shares rebounded on September 28 as market sentiment remained positive, following a new decree recently released  to cut tax for virus-hit businesses.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) was up 0.47 percent to 912.50 points, bouncing back from a two-day decline of total 0.46 percent.

 

The VN-Index gained a total of 0.81 percent 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 VND 200 billion (USD 8.64 million) in 2020.

Such information helped lifted investors’ confidence in local stocks.

Large-cap tracker VN30-Index rose 1.01 percent 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 percent and 0.67 percent, respectively.
Banks, securities companies and retailers were the driving factor of the stock market on Monday.

The three sector indices rose 1.2 percent, 2.2 percent and 2.4 percent, 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 percent 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 percent 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 realized 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 VND 390 billion, up nearly 191 percent 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 Hanoi Stock Exchange, the HNX-Index advanced 1.22 percent to 133.12 points on Monday.

The northern market index gained a total of nearly 1.8 percent last week.

Nearly 480 million shares were traded on the two exchanges, worth VND 8.06 trillion (USD 348 million).- (VNS/VLLF)
 

Send Us Your Comments:

See also:

Video

Vietnam Law & Legal Forum