Vietnam’s stocks rose, with the benchmark index on track to close at its highest level in more than eight months, as easing monetary policy and government efforts to boost the economy brighten the outlook for the nation’s equities.
The benchmark VN Index rose 0.3% as of 9:45am local time Tuesday to 1,119.11, taking gains in the measure from its November low to over 20%. Sieu Thanh JSC, Nam Song Hau Trading Investing Petroleum JSC and TMT Automobile JSC are among components that have enjoyed the biggest gains this year. The gauge is still well off its record close 1,528.57 from Jan. 6, 2022.
Factors are converging to help fuel the gains. The State Bank of Vietnam late last month cut the refinancing rate to 5% from 5.5% to boost the struggling economy, continuing a spate of measures that reverse the monetary tightening implemented last year. It has vowed to keep pressuring lenders to lower loan rates. Also, the government will consider more measures to support businesses amid the economic recovery, investment and planning minister Nguyen Chi Dung told lawmakers earlier this month.
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