The market rallied Monday as the State Bank of Vietnam's (SBV) policy rate cuts sent positive vibes to investors.
On the Ho Chi Minh Stock Exchange (HoSE), the VN-Index started off the session with a fall, steady yet short-lived. It began to rise at around 1.30 p.m. and eventually hit 1,079.28 points, up 14.64 points (1.38 percent) from the previous session.
HoSE-listed advancers outnumbered decliners by 269 to 73, with 18 stocks hitting ceiling prices whereas two were at rock bottom. The HoSE was busy with nearly VND13 trillion (US$553 million) worth of shares being traded.
"There are good prospects for the market in the short term as SBV has cut its policy rates to stimulate the economy," said an analyst.
The VN30-Index echoed the VN-Index pattern. It gained 15.04 points (1.40 percent) to close at 1,088.72 points. In the basket, 24 stocks climbed, two stayed unchanged and four fell.
Vingroup (VIC) led the market rally with a gain of 5.45 percent. Other stocks behind the bullish trend included Vietcombank (VCB), Vinhomes (VHM), Vietinbank (CTG), Techcombank (TCB), and Military Bank (MBB).
Electrical equipment was the sector on the front foot on Monday as it gained 4.07 percent on the back of the bullish sentiment. In the sector, GELEX Group (GEX) rose by 6.05 percent, followed by Vietnam Electric Cable (CAV) and SAM Holdings (SAM).
Real estate was the next sector lifting indices as it saw lots of green on the screen. Major gainers included Vinhomes (VHM), Vingroup (VIC), and Vincom (VRE). Analysts believe SBV's policy rate cuts were the key factor behind the investors' optimism.
Upbeat investors also put their bullish bets on banking stocks on Monday as 18 out of 20 listed banks gained points. Notably, Vietcombank (VCB) rose by 1.53 percent, Vietinbank by 2.57 percent, and Techcombank (TCB) by 3.35 percent.
The HNX-Index on the Hanoi Stock Exchange (HNX) surged Monday, gaining 2.98 points (1.44 percent) to end at 210.48 points.
Foreign investors withdrew their money from the market as they net-sold a total of around VND305.94 billion worth of shares on the two exchanges. Of which, they net sold VND312.1 billion on HoSE and net bought VND6.16 billion on HNX.
