Vietnam index rises on rate cut plan, funds buying

Mon Mar 17, 2014 12:53am EDT

HANOI, March 17 (Reuters) - Vietnam's benchmark VN Index
 rose 0.6 percent at the break on Monday, following state
media reports that the central bank would cut key rates this
week and a buying plan by an exchange-traded fund.
    The central bank will lower the ceiling on interest rates
that banks can offer on dong deposits to 6.0 percent per annum
from 7.0 percent now, state-run Voice of Vietnam radio said
earlier on Monday. 
    "Sentiment is positive because the rates cuts imply a stable
macroeconomic outlook," said deputy manager Nguyen Tuan at An
Binh Securities.
    The VN Index opened at 603.05 points on Monday, the highest
level since October 2009.
    The Market Vectors Vietnam exchange-traded fund 
would add stocks of food producer Masan Group and
Petrovietnam Transportation Corp to its portfolio
during its restructuring ending March 24, it said in a
statement.
    The fund would also buy more stakes from real estate firm
Vingroup and HAGL.
    MSN jumped 6.93 percent to its nine-month intraday high at
108,000 dong ($5.12). PVT climbed 6.67 percent, VIC advanced
1.97 percent and HAG rose 3.69 percent.
    Here is a snapshot of the VN Index at midday (0431
GMT).
                 VN Index       600.39             
              PREV. CLOSE       596.83             
                 % CHANGE        0.60%             
                                                   
                     HIGH       603.24             
                      LOW        598.7             
                                                   
        Change (%) 1-mnth        4.301             
        Change (%) 3-mnth       17.937             
        Change (%) 1-year       25.754             
                                                   
             52-week high       600.68    14-Mar-14
             52-week low        462.13    30-Aug-13
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.