Stocks rebound as interest rates slashed

Movement of VN-Index on June 28. (Photo:
Movement of VN-Index on June 28. (Photo:
Vietnam’s benchmark VN-Index advanced on June 28 as investors’ wariness was eased after commercial banks agreed to cut annual lending interest rates to 12 percent and borrowing interest rates to 10 percent as of July 1.

The shares of 242 companies and four mutual funds listed on the Ho Chi Minh Stock Exchange rose 0.43 percent, or 2.16 points, to 507.28 points.

Among the index members, 91 stocks gained, 108 declined, and 47 remained unchanged. Trading volume fell to 48.06 million shares, worth VND1.21 trillion.

Telecommunication cable producer Viet - Han Corporation (VHG) faced strong selling pressure to take profits this morning. However, the demand to buy this stock was also high, helping it achieve the top position of most active shares by volume with 1.94 million shares traded.

Ocean Group Joint Stock Company (OGC) took the second rank as 1.47 million shares changed hands.

Saigon Thuong Tin Commercial Bank or Sacombank (STB) came in third with 1.16 million shares traded, of which more than half was bought by foreign investors.

On June 16, Dragon Financial Holdings Limited, registered to sell 15 million shares of Sacombank (STB). The company currently has sold 10.07 million shares, sending its holdings to 47,977,554 shares, accounting for 7.16 percent of Sacombank’s chartered capital, restructuring its investment category.

Hapaco Group Joint Stock Company (HAP) added 4.98 percent to end at VND21,100.

Ben Tre Forestry and Aquaproduct Import Export Joint Stock Company (FBT) advanced 4.92 percent to VND12,800.

Foreign Trade Development and Investment Corporation of Ho Chi Minh City (FDC) climbed 4.86 percent.

Losers on the city bourse included Kinh Bac City Development Share Holding Corporation (KBC), Hoa sen Group (HSG) and Traphaco Joint Stock Company (TRA).

From January 15 to May 19, Nguyen Vinh Tho, husband of Dang Thi Hoang Phuong – member of Board of Directors of Kinh Bac City Development Share Holding Corporation (KBC), sold 12,000 shares without announcement.

The Hanoi’s HNX-Index also rebounded 0.47 percent, or 0.75 percent, to 161.15 points. The northern bourse saw 37.2 million shares changing hands at a value of VND1.08 trillion.

The UPCoM-Index inched up 0.29 points to 47.44 points as of 11:30 am local time. 400,000 shares were traded, worth VND6 billion.

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