Foreign investment lifts markets

May 31st at 14:18

31-05-2013 14:18:57+07:00

Shares continue to rally but liquidity declines.On the HCM City Stock Exchange, the VN-Index added 1.23 per cent to reach 521.45 points.

Losers almost doubled gainers.

Dropping nearly 26 per cent over Wednesday, market value totalled VND1.24 trillion (US$59 million) on a volume of 75.6 million shares.

The VN30, tracking the southern bourse's top 30 shares, put on another 0.93 per cent to finish at 584.70 points, with more than half of shares advancing.

Refrigeration Electric Engineering Corp (REE) had the best day, adding 6.4 per cent. Vietcombank (VCB), PetroVietnam Drilling Services (PVD), PetroVietnam Low Pressure Gas Distribution (PGD) and Da Nang Rubber (DRC) followed, adding between 3.3-5.3 per cent.

On the Ha Noi Stock Exchange, the HNX-Index closed at 65.14 points, a 1.05 per cent increase.

Gainers overwhelmed losers by 127-65.

Over 54.8 million shares were exchange for VND450 billion ($21.4 million), plunging 45.3 per cent compared to the previous session.

The HNX30, representing the bourse's leading shares in terms of capitalisation and liquidity, climbed 2 per cent to 127.73 points.

Foreign investors finished yesterday as net buyers by a margin of over VND30 billion ($1.4 million).

According to a recent report compiled by Bloomberg, foreign investors have been net buyers in the Vietnamese stock market by $254 million since the beginning of this year, the highest level since 2008.

Corporate profits of stocks tracked by the MSCI Vietnam Index are expected to grow 16 per cent this year.

According to the Viet Nam Securities Depository, the number of foreign investment accounts in Viet Nam has risen to a total 16,000.

Head of research for Maybank Kim Eng Securities Co, Michael Kokalari, forecast the VN-Index would increase to 550 points by the end of this year, thanks to attention from foreign investors.

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