Obama win boosts local bourse
Obama win boosts local bourse
America's vote of confidence in re-elected President Barack Obama November 7 led to traders showing confidence in the market, as shares rallied to reverse Tuesday's losses.
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| Source: VietstockFinance |
Global stocks gained as soon as news filtered through of Obama's triumph and the Vietnamese stock market shed its usual independence to mirror this trend.
Analyst Hoang Vu for the financial website vietstock.vn said the US president election cycle usually has a significant impact on stock indices. "Many studies on the relationship between stocks and the election show that the market works better under the governance of the Democratic Party," he added.
At a symbolic election held in HCM City yesterday, many Vietnamese and American entrepreneurs also supported the US president. Rad Kivette, director of Vina Capital Foundation's Development Cooperation, said Obama cared about the relationship between the US and Asia, where Viet Nam would become the region's focus in years to come.
On the HCM City Stock Exchange, the VN-Index edged up 1 per cent to 380.90 points. Gainers outnumbered losers by 170-63.
Market value on the southern bourse reached only VND380.6 billion (US$18 million), however, falling 40 per cent compared to Tuesday's level. Trading volume yesterday totalled 31.15 million shares.
The effects of several declining sessions made share prices suddenly alluring to investors, as nine of the 30 leading shares by liquidity and capitalisation hit their ceiling prices.
The high performers were insurer Bao Viet (BVH), Vietinbank (CTG), Vietcombank (VCB), steelmaker Hoa Phat (HPG), sugar processor Bourbon Tay Ninh (SBT), PetroVietnam Finance (PVF) and property developers Dic Corp (DIG), Becamex (IJC) and Tan Tao (ITA).
Meanwhile, Sacombank (STB) was the only major stock to tumble.
The VN30, which tracks the movements of these stocks, advanced by 0.94 per cent to 450.83 points.
Bank stocks proved particularly popular with traders yesterday. Alongside those to hit the daily increase limit, Military Bank (MBB), Eximbank (EIB), Asia Commercial Bank (ACB) and Sai Gon – Ha Noi Bank (SHB) all posted gains.
On the Ha Noi Stock Exchange, the HNX-Index closed at 51.58 points, a 1.82 per cent rise, as gainers overwhelmed fallers by 149-50.
Trading value and volume increased around 25 per cent to VND193.2 billion ($7 million) and 30.9 million shares.
The HNX30, representing the city's top stocks, put on 2.23 per cent to finish the session at 93.15 points.
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