Banks lead market upturn in 2018's first trading day

15:02 | 04/01/2018 Economy

Stocks ended the first trading day of 2018 in the green on the two national stock exchanges, reflecting investors’ optimism about the market outlook this year.

Finance Minister Dinh Tien Dung beats the ceremonial gong to open the first trading session of Vietnam’s stock market in 2018 on January 2 - Source: VNA

On the HCM Stock Exchange, the VN-Index advanced 1.17 percent to close January 2 at 995.17 points. Vietnam’s benchmark index climbed 48 percent in 2017.

On the Hanoi Stock Exchange, the HNX-Index rose 1.71 percent to end at 118.87 points. The northern market index also soared 47 percent last year.

Bank stocks led the upturn on January 2 on investors’ regard for the banks’ positive earnings last year and their rosy 2018 outlook.

Nine of 10 listed lenders on the two exchanges gained value while only one closed unchanged.

BIDV (BID) was the biggest gainer with growth of 5.9 percent while the others in the Big Four (four biggest banks by market value and assets) – Vietcombank (VCB), Vietinbank (CTG) and VPBank (VPB) – increased 1.3 percent, 3.1 percent and 5.6 percent, respectively.

The two biggest banks on the Hanoi exchange – Asia Commercial Bank (ACB) and Saigon-Hanoi Bank (SHB) – rallied by over 5 percent each...

A total of 250.7 million shares worth a combined 6.65 trillion VND (292 million USD) were traded in the two markets.

Foreign investors also concluded January 2 as net buyers on both exchanges, picking up total net value of 290 billion VND.

The first trading session of Vietnam’s stock market in 2018 was marked with a ceremony held by the State Securities Commission and the Hanoi Stock Exchange.

Addressing the event, Minister of Finance Dinh Tien Dung said the stock market witnessed breakthrough development in 2017. The newly opened derivatives market developed rapidly, helping to perfect the structure of the stock market in particular and the financial market in general.

With the presence of many big businesses, the value of the securities market was equivalent to over 78 percent of the GDP in 2016 and 70.2 percent of the GDP in 2017, reaching the target set for 2020.

The VN-Index ended the year 2017 at over 984 points, up 48 percent from 2016. The liquidity of the stock and bond markets rose by 65 percent and 39 percent, respectively.

The minister said that last year, the stock market successfully established itself as a channel for mobilising medium- and long-term capital for the Government and businesses. It greatly contributed to the equitisation of and divestment from State-owned enterprises and to the attraction of foreign investment.

The official said his ministry will coordinate with other ministries and sectors to carry out key solutions to continue developing Viet Nam’s stock market in a rapid and sustainable manner.

Theo VNA