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The US and China signed a trade deal on January 16 will likely lead to a sharp increase in sales of US goods and services to China.
The accord, according to Wall Street Journal, will open the Chinese market to foreign firms – especially in financial services – and provide strong new protection for trade secrets and intellectual property. Furthermore, possible tariff reductions will be left to later negotiations.
|The US-China trade deal has been encouraging news for the Vietnamese stock exchange (Photo: New York Times)|
US stocks have surged since the countries said they were nearing a deal. However, market reaction to the actual signing was muted, suggesting that investors saw little that was surprising within the text of the agreement.
Bank shares, meanwhile, buoyed up teh Vietnamese stock market, while reports of rent at new peaks and weaker outlook for real estate in 2020 weighed on property stocks.
The trading session in January 15 saw Vietnam Prosperity Bank (VPB) produce the largest gains thanks to a $212.5 million investment from the International Finance Corporation (IFC), the World Bank’s investment arm. The fresh funding would help the local bank expand its lending to small- and medium-sized enterprises (SMEs) and sustain its efforts to boost financing for climate-friendly projects.
The Vietnamese stock market edged higher with 7.14 points, or 0.74 per cent, to 974.7 points. As of January 16, shares of BIDV (BID) and VietinBank (CTG) are being driven by optimistic investors, inching up 6.1 and 5 per cent, respectively.
HD Bank, Military Bank, ACB, and SHB also rallied.
|Bank shares have been supporting the Vietnamese stock market in its rise|
REE gained 2 per cent to end at VND36,300 ($1.58) per share since the firm announced its investment of VND2.12 trillion ($92.173 million) for its upcoming project Wind Power Plant No.3 with an estimated 48MW capacity for Phase 1.
The wind energy project is expected to be located in Dinh An Economic Zone, the coastal mudflats in Truong Long commune of Duyen Hai district, Tra Vinh province.
On the other hand, real estate stocks were weaker on the day as local press reports that the Vietnam Real Estate Brokers Association are expecting fewer project launches for 2020, while market updates from CBRE and Savills show high commercial rental prices and hotel rates.
Oil-related stocks continue to fall as the government lowers pump prices for gas and diesel ahead of the Tet holidays to manage inflation, according to researchers at KB Securities.