US delay of some tariffs on Chinese goods fuels sentiment

16-Aug-2019 Intellasia | The Saigon Times | 6:02 AM Print This Post

Local stocks rallied in morning trade today, August 14, after United States President Donald Trump delayed 10 percent tariffs on some imports from China but they only made modest gains due to a selloff.

Having leapt some eight points to an intraday high of 974 points, the VN Index of the Hochiminh Stock Exchange retreated and closed up 2.08 points, or 0.22 percent, at 968.91. Trade dipped against the previous day, with volume shrinking 16.5 percent to 151.5 million shares and value sliding 19 percent at VND3.4 trillion.

According to securities firms, investors were bullish as Trump on Tuesday backed off his deadline for 10 percent tariffs on the remaining $300 billion of Chinese imports, delaying duties on cellphones, laptops and other consumer goods. The tariffs will be delayed until December 15, instead of taking effect on September 1.

Global markets also cheered the news as the announcement sent US stocks surging, after steep losses in the past week, with the Standard & Poor’s 500 up 1.5 percent and the Nasdaq Composite gaining nearly 2 percent.

However, net foreign selling increased sharply in afternoon trade as investors were concerned about the instability of regional stock markets following the recent protests in Hong Kong. Ending the day, foreigners net sold 6.9 million shares worth VND222.7 billion on the HCM City market, down 17.9 percent and 26.3 percent compared to a day earlier, respectively

According to vietstock.vn, the technology, insurance and retail sectors were the top contributors to the morning surge. In contrast, the worst-performing stocks were those in the real estate, securities, petroleum, energy and healthcare sectors.

Saigon-Hanoi Securities Company said the local stock market was now exposed to short-term risks and any recovery would be technical and short-lived.

Given the lack of good news, the benchmark VN Index may experience a technical recovery and head towards its short-term resistance level of 970 points. Investors were clearly betting on the possibility that the stock market would keep falling this month, it said in a recent report.

On the Hanoi Stock Exchange, the HNX-Index slid for the second straight session, losing 0.31 point, or 0.3 percent, at 101.98. There were 31.8 million shares worth VND439 billion changing hands at the end of the day, expanding by 11.8 percent and 29.5 percent versus the session earlier, respectively.

Foreign investors net bought 332,000 shares but their net selling value was VND10.2 billion, up from VND3 billion on Tuesday.

https://english.thesaigontimes.vn/70580/us-delay-of-some-tariffs-on-chinese-goods-fuels-sentiment.html

 


Category: Stocks, Vietnam

Print This Post