Vietnam index hits new 52-mth high on buying, rate cuts

Mon Mar 17, 2014 4:58am EDT

HANOI, March 17 (Reuters) - Vietnam's benchmark VN Index
 ended up 0.59 percent at 600.36 points on Monday, a new
52-month peak, boosted by buying demand and after the central
bank announced several rate cuts. 
    The central bank said on Monday it 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. 
    "The continued decline in deposit rates will likely support
the rally in the local stock market," the ANZ bank said in a
report on Monday.
    The index on Vietnam's market, Southeast Asia's best
performer in 2013, closed at the highest level since Oct. 26,
2009, rising past a 52-month peak reached last Friday.
 
    The Market Vectors Vietnam exchange-traded fund (ETF)
 would add stocks of food producer Masan Group 
and Petrovietnam Transportation Corp to its portfolio
for this quarter's restructuring, it said in a statement.
    MSN ended up 6.93 percent and PVT rose 6.67 percent.
    "The ETF's buying has surprisingly boosted the index
surpassing its strong resistance level of 600 points," said
analyst Do Bao Ngoc at VPBank.
    The fund said it would also buy stocks of property firms
Vingroup Co and HAGL Co. VIC shares closed up
3.29 percent and HAG shares ended up 4.06 percent.
    The VN Index would rise further thanks to positive sentiment
and extended buying from ETF this week, analysts said.
    Here is a snapshot of the VN Index at the close (0801
GMT).
                 VN Index       600.36           
              PREV. CLOSE       596.83           
                 % CHANGE        0.59%           
                                                 
                     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
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