CPTPP approval lifts export stocks
CPTPP approval lifts export stocks
The approval of the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) trade pact helped lift export stocks while other sectors ended Tuesday deep in negative territory.
The benchmark VN Index on the Ho Chi Minh Stock Exchange dropped 1.39 per cent to close at 905.38 points. It gained 0.42 per cent on Monday.
The HNX Index on the Ha Noi Stock Exchange lost 0.87 per cent to end at 102.47 points, retreating from a 0.35 per cent gain made in the previous day.
Export industries such as the seafood and textile-garment sectors benefited from the National Assembly’s vote to approve Viet Nam’s membership in the CPTPP trade pact on Monday, which connects 11 economies across the Asia-Pacific region and goes into effect next year.
Exports are projected to grow by 4.2 per cent, Bao Viet Securities JSC (BVSC) says in a note, adding that the garment and textile industries will benefit from Viet Nam’s participation in the trade pact.
According to a World Bank report, Viet Nam’s gross domestic product (GDP) is forecast to rise 1.1 per cent by 2030.
Among Vietnamese seafood exporters that made gains were Vinh Hoan Corporation (VHC), Hung Vuong JSC (HVG), Sao Ta Foods JSC (FMC) and Cuu Long An Giang Fish JSC (ACL), which all rose between one and 6.2 per cent.
Textile and garment stocks also ended up, including Thanh Cong Textile Garment Investment Trading JSC (TCM), TNG Investment and Trading JSC (TNG) and Bình Thanh Import-Export Production and Trade JSC (GIL).
On the negative side, agriculture, electronics and metals are predicted by BVSC to suffer from a net decline of exports and face more competitiveness in both domestic and overseas markets.
Vietnamese shares also encountered low investor confidence amidst “a lack of supportive information and unpredictable movements of the market,” while “unfavourable changes in global markets can have significant impacts on the domestic market,” BVSC adds.
“This uncertainty can result in cautious sentiments of investors” and “cash inflows running into the market will weaken,” the brokerage says.
Poor market sentiment resulted in volatile trading with increased selling and negative market breadth on Tuesday.
More than 208.2 million shares were traded across the two exchanges, worth VND4.14 trillion (US$184 million).
The figures were up from Monday’s numbers of 165.5 million shares in volume and VND3.1 trillion in value.
Declining stocks outnumbered gainers by 277 to 155 while 109 others were unchanged.
