VN-Index bounces back with stimulus package approved

The index dropped to the 1,480 range, where it remained before climbing in the late afternoon to close 18 points higher.

Trading value on the Ho Chi Minh Stock Exchange (HoSE), on which the index is based, dropped marginally to VND35.71 trillion ($1.57 billion).

The National Assembly late Tuesday approved an economic stimulus package that could go up to VND350 trillion ($15.4 billion), which involves cutting down value-added tax from 10 percent to 8 percent to boost consumption.

The VN30 basket, comprising the 30 largest capped stocks, saw 20 tickers in the green, led by BID of state-owned lender BIDV with a ceiling increase of 7 percent.

The ticker has climbed since November, having risen 27 percent since and is now approaching its previous peak in early 2020.

KBC of industrial real estate developer Kinh Bac City closed 6.9 percent higher, and VRE of retail real estate arm Vincom Retail gained 5.3 percent.

FLC of real estate developer FLC closed 6.8 percent lower in its third losing session in a row after its chairman Trinh Van Quyet’s stock accounts were frozen due to failing to disclose his sales of 74.8 million shares.

Other related stocks like ROS of construction firm FLC Faros and HAI of HAI Agrochem Jsc closed at the floor price.

Many real estate stocks plunged Wednesday after developer Tan Hoang Minh decided to pull out of a bid to buy a land lot in Ho Chi Minh City at VND2.45 billion ($108,000) per square meter, the biggest property price tag in Vietnam’s real estate industry.

LIC of LICOGI Corporation closed with a 11.47 percent fall, while ITA of Tan Tao Investment and Industry Corporation and DIG of Development Investment Construction JSC both hit its floor price with a 6.9 percent drop.

Foreign investors were net buyers to the tune of VND423 billion, with focus on KBC and DXG of real estate developer Dat Xanh Group.

The HNX-Index for stocks on the Hanoi Stock Exchange, home to mid and small caps, closed 1.65 percent lower while the UPCoM-Index for the Unlisted Public Companies Market fell 0.31 percent.