Shares rise on Fed rate hike hopes

On the Ho Chi Minh Stock Exchange, the VN-Index increased 1.06 per cent to end Friday’s session at 958.28 points.

On the Ha Noi Stock Exchange, the HNX-Index rose 1.14 per cent to close at 104.21 points.

Liquidity on the two bourses increased with 174.6 million shares worth VND3.6 trillion (more than US$154 million) traded, up 19 per cent in volume and 6 per cent in value compared to Thursday.

“The market is expected to improve early next week after two rebounding sessions toward the weekend with rising liquidity,” said Tran Xuan Bach, a stock analyst at Bao Viet Securities Joint Stock Company in a daily report.

Cash flow rotated among stock groups with macro-economic benefits, including textiles, industrial property, electricity and information technology, he said, adding that bank stocks and oil and gas stocks would continue gaining next week, despite facing strong volatility and correction risk.

Blue chips drove the market with 24 of 30 leading stocks by value and liquidity on the Ho Chi Minh Stock Exchange gaining and only three declining. The best performers included PV Gas (GAS) which increased 3.2 per cent, followed by Vinhomes (VHM), Mobile World Investment Group (MWG) and Phu Nhuan Jewellery (PNJ) with growth of more than 2 per cent.

Banking stocks were also big gainers, as 11 of 13 listed banks increased, of which Bank for Investment and Development of Viet Nam (BID), Military Bank (MBB), Sai Gon-Ha Noi Bank (SHB), Sacombank (STB) and Tien Phong Bank (TPB) increased by more than 1 per cent.

According to BIDV Securities Joint Stock Company, local and regional market sentiment recovered slightly as market expectations focused on the possibility that the Fed might lower interest rates twice this year.

This is expected to cool down US-Mexico trade tension and central banks will have appropriate policy adjustments to minimise losses from prolonged China-US trade friction.

Bao Viet Securities JSC predicted the VN-Index would move toward the resistance zone of 965-970 points in several sessions.

“In this zone, we leave open the possibility that the market will face another adjusting pressure,” it said.