Falling CPI rallies City shares
Falling CPI rallies City shares
Shares rallied during Wednesday's session, reacting positively to the decreasing consumer price index (CPI) in HCM City in March.
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| Source: VietstockFinance |
CPI in the city fell 0.29 per cent compared to last month, therefore the index this month has increased only 1.15 per cent since earlier this year.
The index in the southern province of Long An also dropped 0.07 per cent over February. The CPI for Ha Noi is then expected to decline.
Meanwhile, interest rates also tend to decline. Vietcombank yesterday reduced its deposit rate for a three-month term from 8 to 7.5 per cent and over 12-month term from 10.5 to 9.5 per cent.
In comparision with other banks, Vietcombank had the lowest deposit rates. "The bank's cut in interest rates on Vietnamese dong deposits shows the possibility that several other banks will make the same move," said BIDV Securities Co analyst Nguyen Thi Thu Trang.
"If this happens, it will fix the recent condition of sluggish trading," she added.
The VN-Index on the HCM City Stock Exchange added 1.37 per cent, reaching 487.04 points.
The VN30, composed of the southern exchange's 30 leading shares, also gained 0.7 per cent to 551.15 points. Over 20 of the blue chips it tracks rebounded, while only five of the shares retreated, including insurer Bao Viet (BVH), Becamex Infrastructure (IJC), commercial baker Kinh Do (KDC), food processor Bourbon Tay Ninh (SBT) and Sacombank (STB).
Overall, the number of advancers on the entire exchange doubled that of decliners.
Trading value jumped 74.5 per cent over Tuesday's session to more than VND1 trillion (US$47.6 million) as trading value hit 52.3 million shares.
On the Ha Noi Stock Exchange, the HNX-Index closed at 61.54 points, a 0.74 per cent increase compared to the previous day. Gainers outnumbered losers by 126-73.
Trading, however, remained sluggish, improving slightly to 35 million shares and VND286 billion ($13.6 million).
The HNX30, which represents the exchange's top shares, put on 0.67 per cent to 118.29 points.
Foreign investors narrowed their scale of buying to a net value of just VND1.7 billion ($80,900) in HCM City, while the value in Ha Noi reached VND11 billion ($523,800).
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