Indices rise despite sluggish trading
Indices rise despite sluggish trading
Trading showed no signs of improvement on the two stock exchanges yesterday, but blue chips continued to sustain the market.
On the HCM City Stock Exchange, the VN-Index closed yesterday 0.45 per cent higher at 494.66 points with advancers doubling decliners.
Trading remained dry with 26.3 million shares worth VND491 billion (US$23.4 million) changing hands during the session, down 16.5 per cent in volume and 20 per cent in value compared with a day earlier.
The power price hike had no impacts on major shares, with trading in the top 30 shares by market capitalisation and liquidity accounting for over half of the total market value at VND297 billion ($14.1 million).
The VN30 also increased 0.37 per cent to 545.59 points.
Shares in power companies which gained value on Thursday following the news of the electricity price hike started to decline yesterday.
Khanh Hoa Power (KHP) fell 0.8 per cent while thermal power companies Pha Lai (PPC) and Ba Ria (BTP) lost 0.43 per cent and 0.65 per cent, respectively.
According to stock analysts at BIDV Securities Co, the increase in power prices would not immediately affect the profits of electricity companies as they are stuck in contracts with the Electricity of Viet Nam. However, risk-taking investors might be tempted by reliable power firms.
A member of the VN30, Refrigeration Electrical Engineering Corp (REE), was the most active code yesterday with 2.5 million shares traded valued at VND25,700 ($1.22) each.
On the Ha Noi Stock Exchange, the HNX-Index also climbed 0.94 per cent to close on 62.20 points, but the value of trading declined 28 per cent from Thursday to just VND80.6 billion ($3.8 million).
PetroVietnam Construction (PVX) was the most active code with 1.2 million shares changing hands, the only stock to break the 1 million mark. PVX rose 2.2 per cent to VND4,600.
Rising inflation is expected in August following price rises in gas, electricity and healthcare services. Stock analysts at PV Securities Co said if inflation jumped, it would have a negative impact on domestic demand and reduce purchasing power.
Foreign investors concluded yesterday as net buyers on both markets, picking up shares worth a combined VND25.6 billion ($1.2 million).
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