The Hanoitimes - Asian shares rallied today and Vietnamese peered followed suit.
Vietnamese stocks soared the most in seven months on the first trading day of December, tracking gains in Asian bourses after Washington and Beijing postponed tariff escalation last weekend, traders said.
The benchmark VN Index of the Ho Chi Minh Stock Exchange on December 3 closed up 25.05 points, or 2.7%, the strongest rise since May 7, 2018, at 951.59 – the highest since October 22, according to exchange data.
Market sentiment was positive right from the open session and went up throughout the day. Volume was heavy with 209.83 million shares worth VND4.88 trillion (US$219 million), compared to an average of 145.3 million shares over the past 10 days.
Movements of the VN Index on December 3. Chart: Bloomberg
Both domestic and foreign investors stepped in to buy across the board, especially in heavyweights like MBBank (MBB), VPBank (VPB), Vietcombank (VCB), Sacombank (STB), VietinBank (CTG), Hoa Phat Group (HPG), and PV Gas (GAS). As many as 224 tickers closed up, outnumbering 82 losers on the bourse.
The rally in the Vietnamese stock market today stemmed from gains across major Asian bourses after Chinese President Xi Jinping and US President Donald Trump over the weekend agreed to a temporary trade truce between the two economic powerhouses.
The mainland Chinese markets, closely watched as a result of Beijing’s ongoing trade spat with Washington, saw strong gains. The Shanghai composite ended up 2.57% while the Shenzhen composite advanced 3.27%. Meanwhile, Japan’s Nikkei 225 rose 1% and in South Korea, the Kospi gained 1.67%.
Foreign players net bought VND142 billion (US$6.36 million) worth of Vietnamese shares today, with dairy producer Vinamilk (VNM) being the most favorite stock.
Vietnam’s manufacturing activity also recorded improvement in November, with the headline Nikkei Vietnam Manufacturing Purchasing Managers' index (PMI) climbing from a 7-year high to 56.5 from 53.9 in October.