Gold, stocks, dollar exchange rates at banks drop simultaneously

After the US Federal Reserve (FED) announced to raise the benchmark interest rate by 75 basis points, or 0.75 percentage points, to 3.75-4 percent per annum as expected, gold, stocks, and US dollars at banks fell on November 3. Only the US dollar price on the free market jumped sharply.

While the global stock market dropped sharply in reaction to the Fed's interest rate hike, Vietnam's stock market only decreased slightly by nearly 4 points in the trading session on November 3, mainly because NVL shares hit the floor price of VND64,400 per share.

The market shook quite strongly during the trading session but recovered significantly at the end of the session. In a decrease of 3.38 points of the VN-Index at the close, NVL accounted for 2.34 points.

At the end of the trading session, the VN-Index went down 3.38 points, or 0.33 percent, to 1,019 points, with 274 losers, 166 gainers, and 81 unchanged stocks.

On the smaller bourse in the North, the HNX-Index slid 0.92 points to close at 210.74 points, with 106 losers, 50 gainers, and 55 unchanged stocks.

Market liquidity dropped sharply, with the total trading value on the two official exchanges less than VND8.5 trillion. Foreign investors also returned to a net buying of more than VND251 billion on the HoSE.

* On November 3, although the global gold price declined sharply after the Fed raised interest rates, the price of gold in Vietnam only retreated by VND200,000 - VND300,000 per tael, so it stretched the gap between the domestic and global gold prices to nearly VND19 million per tael.

PNJ Company bought SJC gold at VND66 million per tael and sold it at VND66.9 million per tael, down VND300,000 per tael in both buying and selling rates compared to the previous day at 4 p.m. in HCMC.

At the same time, in Hanoi, SJC Company traded SJC gold at VND66 million per tael for buying and VND67.02 million per tael for selling, down VND200,000 per tael in both buying and selling rates.

* On the morning of November 3, the State Bank of Vietnam listed the reference exchange rate at VND23,687 per US dollar, down VND1 compared to the previous session. During the day, commercial banks also reduced the US dollar price by VND1-2 per dollar, but the US dollar selling price was still nailed at a high level, close to the allowed ceiling price.

Specifically, Vietcombank listed the US dollars at VND24,591 per dollar for buying and VND24,871 per dollar for selling, down VND1. ACB kept the buying rate unchanged and cut the selling rate by VND2 to trade at VND24,700 for buying and VND24,870 for selling.

While the US dollar price at banks cooled down, on the free market, foreign currency exchange agencies still increased the US dollar price by VND30-40 compared to the previous day, trading at VND25,280 for buying and VND25,360 for selling.