April 11: Vietnam Stocks Rally on Rate Cut Move

The benchmark VN Index gained 7.89 points or 1.75% to 458.74. Volume rose 50% to 99.4million shares worth of VND1.56 trillion. Put-through trading contributed 10.9 million shares worth VND264.97 billion.

We saw 5.4 million STB shares changed hand s at VN23,600 each, much lower than market close price of VND25,300 each.

Other big put-through deals included 1 million AGR shares changed hands at neutral price of VND9,300 each; 0.8 million VNS shares changed hands at VND28,000 each; and 0.6 million EIB shares changed hands at the ceiling price of VND18,700, higher than current market price of VND18,000.

VN30 was still stronger than the broader market, adding 10.23 points or 1.98% to close at 527.63. Volume rose to 31.3 million shares changed hands for VND692.83 billion.

Market opened the morning session in the green with 8 million shares changed hands as both buyers and sellers were there to take part in the market after the State Bank of Vietnam decided to cut key policy interest rates and deposit rate cap by another 1%, a second downward adjustment in just 1 month, with a vision to cut deposit rate cap to 10% by the end of this year.

The market went on with more caution in late morning as selling pressure at high prices were tense. The bulls and the bears tried to convince the market leading to some volatility today before the bulls came back more aggressively in the afternoon session, pushing many more shares to the ceiling and helped the index close at the high of the day.

The market breadth was broadly positive on the primary bourse where 263 stocks advanced, 33 fell, 40 closed unchanged of which 116 limited up, 3 limited down.

Securities stocks mixed, SSI, HCM closed up but still kept shy of their recent highs, SBS stayed in the neutral line for a second day.

Property shares in general were stronger than the market from blue chips to pennies, with a new regulation to support this sector.  Ceiling actions were popular among property shares.

Banking stocks all gained at the close after lagging behind the broader market during the trading time.

Notable performance included SAM whose share prices stood still at the ceiling with 3.9 million shares changed hands.

HPG suddenly rose to the ceiling after recent sideways movements, nearly 3 million shares were changed hands today.

MBB came second in volume with 3.9 million shares traded, closing up. Other active players included SBS with 3.25 million shares, REE with 2.96 million shares, EIB with 2.9 million shares and OGC with 2.9 million shares.

On the Hanoi Stock Exchange, the HNX, regained 2.1 points, or 2.78%, to end at 77.51. Trading volume rose 12.3% to 98.5 million shares worth VND956.8 billion.

The market breadth was positive on the northern exchange with 263 stocks up,  94 stocks down 39 closed unmoved of which 99 limited up, 18 limited down.

Hanoi-based lender Habubank (HBB) was the most active on the measure with 11.1 million shares changed hands, closed up at VND7,100.

PetroVietnam Construction Joint Stock Corporation (PVX) coming second in liquidity on a trade of 10.4 million units, closing at the ceiling price of VND12.100.

VNDIRECT Securities Corporation (VND) was the third most active with 7.2 million shares changed hands, closing up at VND12,800.