Gold advances, stocks decline

The price of gold in Vietnam recovered on March 16 after declining consecutively in many previous days.
Saigon Jewelry Company bought the precious metal at VND45.9 million per tael and sold at VND46.82 million per tael, an increase of VND300,000 per tael in buying price and VND100,000 per tael in selling price compared to last weekend, at 4 p.m. in Ho Chi Minh City.

At the same time in Hanoi, Bao Tin Minh Chau bought gold at VND46.05 million per tael and sold at VND46.65 million per tael, up VND400,000 per tael in buying rate and VND100,000 per tael in selling rate.

After the US Federal Reserve cut the US dollar interest rate to near zero percent and launched US$700 billion to buy Treasury bonds, the financial market fluctuated strongly. In the global market, the gold price also changed vigorously due to the Fed’s decisions. In the trading session on March 15, gold jumped heavily, sometime hitting US$1,576 an ounce then cooling down gradually. The price of gold in the Asian market declined to $1,534.28 an ounce in the morning on March 16.

According to experts, strong corrections of the global bullion market in a short time showed that investors still felt insecure. Investors concerned that if the disease is not controlled well, the fact that Fed lowered interest rates and bought Treasury bonds will still be unable to prevent the economy from heading for a recession. Experts recommended that investors should not rush to buy or sell gold when the market fluctuates strongly due to high risks.

Meanwhile, the stock market continued to slump steeply. After the VN-Index lost nearly 130 points last week, it continued to erase by nearly 14 points. Several pillar stocks continued to be sold heavily at the end of the trading session, of which, PNJ and VPB hit the bottom, CTG plummeted 6.6 percent, BID plunged 6.3 percent, VCB slashed 5.5 percent, BVH fell 4.8 percent, and ACB shrank 5 percent, causing high pressure on the indicators. Ending the trading session, the VN-Index dropped 13.92 points, or 1.83 percent, to close at 747.86 points.

The HNX-Index of the Hanoi Stock Exchange dived 1.76 points, or 1.74 percent, to close at 99.62 points. Market liquidity was at a fairly high level but significantly lower than previous trading sessions. The total trading volume on both trading floors reached 333.5 million shares, worth VND5.1 trillion. Foreign investors still net sold nearly VND400 billion in the market.

The State Bank of Vietnam adjusted the reference exchange rate to VND23,222 per dollar, up VND10 per dollar compared to last weekend. Commercial banks raised the US dollar exchange rate by VND20 per dollar. Particularly, Vietcombank bought the greenback at VND23,140 per dollar and sold at VND23,170 per dollar.

By Hanh Nhung – Translated by Gia Bao

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