VN shares gain on TPP hopes progress
VN shares gain on TPP hopes progress
Vietnamese shares yesterday inched higher for a second day amid optimism for local car assemblers and car makers following progress made at the Trans-Pacific Partnership (TPP) meeting held in Atlanta.
The benchmark VN Index on the HCM Stock Exchange gained 0.2 per cent to close at 563.54 points and the HNX Index on the Ha Noi Stock Exchange was up 0.1 per cent to finish at 78.02 points.
Yesterday, during a four-day TPP discussion, Canada and Mexico showed some willingness to expand the North American market to more auto parts made in Asian countries, including Viet Nam, Reuters reported yesterday.
As a result, the auto sector had significant gains. Sai Gon General Service Corp (SVC) gained 6.7 per cent and Giai Phong Motor JSC (GGG) was up 7.8 per cent.
Other local producers recorded smaller gains. Hoang Huy Investment Services JSC (HHS) gained 1.8 per cent and TMT Motor JSC (TMT) rounded up 2.3 per cent.
Auto manufacturers have gained at least five per cent in the last two days as they had expected the TPP to be concluded this week and open more opportunities for local carmakers.
The TPP also had positive impacts on local food producers. The best gainers in this sector were Lam Dong Foodstuff JSC (VDL), Mekong Fisheries JSC (AAM) and Chuong Duong Beverages JSC (SCD) which rose 5.8 per cent, 7.7 per cent and 6.7 per cent, respectively.
The two biggest food producers – Vinamilk (VNM) and Ma San Group (MSN) – were up one per cent and 0.7 per cent.
The stock market was also boosted by energy firms, which slightly gained 0.5 per cent as the US-benchmark crude West Texas Intermediate increased by 1.3 per cent to trade at $45.67 a barrel yesterday.
As a result, Petrovietnam Drilling & Well Services (PVD) gained 0.6 per cent, Petroleum Equipment Assembly And Metal Structure JSC (PXS) rose 0.7 per cent and Petrovietnam Coating JSC (PVB) improved by 0.3 per cent.
However, market gains were limited after Nikkei Vietnam Manufacturing yesterday reported that the country's Purchasing Managers' Index (PMI) in September dropped to 49.5 points from 51.3 points in August, brokerage Sai Gon-Ha Noi Securities Corp (SHS) reported yesterday. The Ha Noi-based brokerage firm said that falling demand from overseas markets for local-made products last month was the main reason for the fall of Viet Nam's PMI.
SHS said that strong foreign selling would likely drag the market down in the near future as foreign investors were continuing to withdraw their investments from emerging markets.
