Vietnam’s stocks rise for second day

Vietnamese shares extended gains on both local exchanges for a second day on March 2, led by financial firms such as banks and insurance companies.

The benchmark VN Index on the HCM Stock Exchange rose 1.5 percent to close at 570.18 points, extending its two-day gains to 1.9 percent.

The HNX Index on the Hanoi Stock Exchange added 0.4 percent to finish at 79.30 points. The northern index gained 0.7 percent over the last two sessions.

Local market indices kept pace with the growth of global stock markets during March 2's trading session after the US announced economic data that beat expectations, Saigon-Hanoi Securities Corporation (SHS) wrote in the daily report.

Investors at the Hoang Gia Securities trading floor. Photo: vietnamnews.vn

Improved US economic data lifted investor confidence, easing fears of a weaker Vietnamese dong against the US dollar. On March 2, Vietnam's central bank cut the reference mid-point rate slightly by VND 2 to VND 21,905 per US dollar.

A stronger Vietnamese dong and better investor confidence benefited local financial stocks, including banks and insurance companies.

The four largest banks made big gains in the markets. Vietinbank (CTG) rose 1.7 percent, Sacombank (STB) added 1.8 percent, Vietcombank (VCB) increased by 2.4 percent, and the Bank for Investment and Development of Vietnam (BID) jumped 3.3 percent.

In the insurance sector, Bao Viet Holdings (BVH) surged 6.7 percent, BIDV Insurance Corporation (BIC) went up by 6.3 percent, and Bao Minh Insurance Corporation (BMI) jumped 4.4 percent.

Other stocks that use oil products as their input materials for production also made gains after crude oil prices declined on March 2.

US benchmark crude West Texas Intermediate (WTI) fell 2.2 percent to trade at USD 33.66 a barrel and London-traded Brent crude dropped 1 percent to trade at USD 36.44 a barrel.

Binh Minh Plastic JSC (BMP) gained 2.2 percent, Tien Phong Plastic JSC (NTP) added 2.4 percent, and PetroVietnam Fertilizer and Chemicals Corporation (DPM) leaped 2.8 percent.

Investors traded nearly 204 million shares worth nearly VND 3 trillion (USD 132 million) on March 2, an increase of 9.3 percent from March 1's trading value.