Shares retreat despite CPTPP launch
Shares retreat despite CPTPP launch
The CPTPP coming into effect on Monday pushed up many stocks in the textile sector but failed to help the market recover.
The benchmark VN-Index on the Ho Chi Minh Stock Exchange lost 0.10 per cent to close at 901.80 points.
The southern market index totalled growth of 2.47 per cent last week.
The HNX Index on the Ha Noi Stock Exchange slumped 0.28 per cent to close at 101.58 points.
It gained 1.01 per cent last week.
Market liquidity remained at a very low level with more than 177 million shares traded on the two local exchanges, worth VND3.2 trillion (US$136 million).
Large-cap stocks performed poorly on Monday morning as the blue-chip VN30 Index dropped 0.10 per cent to 859.42 points.
In the VN30 basket, 17 of the 30 largest stocks by market capitalisation declined while only eight advanced.
On a sector basis, securities, real estate, mining, insurance and construction material stocks lost ground in the morning session.
Those industry indices were down between 0.09 per cent and 1.8 per cent, data on vietstock.vn showed.
In the morning, selling pressure dragged Bao Viet Holdings (BVH), Military Bank (MBB), real estate developer (NVL), PetroVietnam Drilling & Well Services Corporation (PVD) and Sai Gon Securities Incorporation (SSI).
In the afternoon session, bottom-fishing activities occurring in some blue-chip stocks such as Vinhomes (VHM), Vincom Retail (VRE) and GAS, curbed the decline of the VN-Index.
The 11-member Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) officially comes into force today, pushing up the textile stocks.
Textile stocks such as DamSan Joint Stock Company (ADS), Everpia JSC (EVE), Garmant 10 Corporation - Joint Stock Company (M10), Thanh Cong Textile Garment Investment Trading Joint Stock Company (TCM), TNG Investment and Trading JSC (TNG), Viet Tien Garment Corporation (VGG) and Vietnam National Textile & Garment Group (VGT), all soared.
M10 hit the daily limit rise of 7 per cent. TCM increased 2.5 per cent. TNG increased by 0.6 per cent.
From January 14, the tariff lines of Viet Nam have officially been abolished according to the agreement and Viet Nam will avoid tariffs imposed by 6 countries which have ratified the CPTPP.
According to Bao Viet Securities Company (BVSC), despite the withdrawal of the US, the CPTPP can still have extremely beneficial impacts for Viet Nam.
Specifically, due to the tariff cut, the CPTPP can boost GDP by 1.32 per cent, or US$1.7 billion. From now until 2035, GDP growth each year could see an increase of 0.016 per cent on average or US$0.02 billion per year, BVSC said.
According to BIDV Securities Company, the market will fluctuate around 900 points while investors are waiting for information from the US-China trade discussion and news on the US government shutdown.
The UPCOM Index on the Unlisted Public Company Market (UPCoM) was down 0.09 per cent to finish at 53.14 points.
