central bank's final decision on Circular No 13 helped settle investor
psychology.
The State Bank of Vietnam's decision, issued late Monday, allows banks
to lend 25 percent of their non-term deposits and count State Treasury
and loans from other credit institutions of terms of three months or
longer as part of their reserves for lending.
The
decision is expected to help ease the capital crunch that banks feared
due to Circular No 13's stricter capital adequacy requirements, which
will take effect on Friday as previously announced.
The central bank on Sept. 28 also decided to keep the prime interest rate at 8 percent for an 11th consecutive month.
On the HCM Stock Exchange, the VN-Index closed up 1.1 percent to
455.13 points. Market value rose by 10 percent over Monday's session to
slightly over 1 trillion VND (53.8 million USD) on a volume of almost 39
million shares.
Advancers outnumbered decliners by
150-57, with Sacombank (STB) the most-active share with over 3 million
changing hands. STB rose for a second day and closed up 1.2 percent to
17,000 VND (0.87 USD) per share.
Of the 10 leading
shares by capitalisation, nine posted gains, with insurer Bao Viet
Holdings (BVH) and property developer Vincom (VIC) rising to their
ceiling price.
Ha Thanh Securities Co's head of
analysis and investment, Tran Van Don, said the impacts of Circular No
13 had dissipated and the market was unlikely to react dramatically.
Many investors remained watchful, Don said, noting the modest increase in trading volume and value on Sept. 28.
He predicted that rising inflation would cause banks difficulties in
lowering interest rates, putting further pressure on the markets.
Duong Hong Ha, chief analyst of Tri Viet Securities Co, agreed the
domestic stock market was unlikely to see any explosive development in
light of rising inflation, high interest rates and a large volume of new
shares to list by year's end.
On the Hanoi Stock
Exchange, the HNX-Index advanced on Sept. 28 by a modest 0.18 percent to
close at 130.17 points. Volume hit 34.6 million shares worth 981.6
billion VND (50.3 million USD) – an increase by 39.5 percent in volume
and nearly 60 percent in value – while gainers outnumbered losers by
203-72. /.
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