October 6, 2015 / 8:56 AM / 3 years ago

UPDATE 1-Vietnam index ends at over 7-wk high; Pacific trade deal supports

(Recasts, adds closing prices, comments)

By Mai Nguyen

HANOI, Oct 6 (Reuters) - Vietnam’s VN Index rose 1.98 percent on Tuesday to close at its highest since Aug. 14, with most shares advancing following the 12-nation Trans-Pacific Partnership (TPP) deal.

Financial shares led the gainers, with top lender Vietcombank rising 4.11 percent to close near a four-week high, while insurer BaoViet Holdings jumped 6.25 percent and Saigon Securities Incorp advanced 6.41 percent.

Shares of textile and seafood companies also rallied as Vietnam, a major exporter of seafood, garments and footwear, could benefit strongly from the TPP, experts said.

Fisheries producer and exporter Hung Vuong Corp climbed 6.9 percent to above a seven-week closing high, while Thanh Cong Textile Garment Investment Trading JSC ended up 2.09 percent, its highest closing level since July 31.

“Despite some time lag needed for TPP to be implemented, the deal in the short term will be a breath of fresh air to the market thanks to its potential benefits for Vietnam,” said Do Quang Hop, deputy head of research at Saigon-Hanoi Securities.

Hop said the index could advance further to 600 points, a strong resistance level.

The Vietnam index has been Asia’s best performer so far this year thanks to the country’s strong performance in manufacturing and exports, most of which, however, are foreign-driven, and potential gains from several trade deals, including TPP. (Additional reporting by My Pham; Editing by Biju Dwarakanath)

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