Southern index shows major rally

Southern index shows major rally

Shares rallied in HCM City April 1 and the VN-Index added 3 per cent to 505.81 points.

Analysts for the financial information website vietstock.vn said it was the highest increase in more than two years.

Gainers outnumbered losers by 170-51.

The market value on the HCM City Stock Exchange reached almost VND1.2 trillion (US$57.1 million) as over 55.4 million shares changed hands.

Blue chips led the rise with the VN30, which tracks the performance of 30 leading shares in capitalisation and liquidity, advancing 2.66 per cent to 566.98 points.

Only logistic company Gemadept (GMD) and food processor Bourbon Tay Ninh (SBT) retreated.

Meanwhile, insurer Bao Viet (BVH), Da Nang Rubber (DRC) and steelmaker Hoa Phat (HPG) hit the daily increase limit of 7 per cent.

The recovery in the northern bourse also helped stocks on the Ha Noi Stock Exchange. Overall, the HNX-Index rose nearly 2.1 per cent to 61.51 points.

However, trading was sluggish as shares tumbled during most of the session.

Trading value and volume fetched VND322.2 billion ($15.3 million) and 42.3 million units, respectively.

The HNX30, representing the top 30 shares, also put on 3.3 per cent to 117.87 points.

"A lot of shares on the northern bourse have reached their support levels; we can hope for a rally during the trading of this week," said ACB Securities Co analyst Cao Tan Phat.

While petrol price was lifted to a record high last week, gas price yesterday dropped VND2,000 per kilo compared to early March. Since the beginning of the year, the gas price has decreased four times with the total decline valued at VND35,000 for a 12kg container.

This last price fall was the largest. However, it was not the main boost in the market yesterday. The event was that price ranges became attractive and the attention of some investors in blue chips led to the rise of speculative cash.

Foreign investors yesterday were still buyers in HCM City by a margin of VND13.84 billion ($659,000), while they concluded as sellers in Ha Noi by VND774.8 million ($36,890).

vietnamnews