Buying spree buoys VN-Index

Sep 21st at 15:31

21-09-2013 15:31:52+07:00

Stocks on the HCM City Stock Exchange closed at a high yesterday, bringing the market benchmark into positive territory as traders combed local shares led by PVF and IJC.

As expected, the local exchange seesawed between gains and losses as the market lacked boosting news, a stock analyst of FPT Securities said. But the market was spirited up by big deals of PetroVietnam Finance JSC (PVF) and Becamex Infrastructure Development Joint Stock Company (IJC).

Shares quickly gained ground as market sentiment improved, he added. Many expected a strong rally to follow as in the past.

The VN-Index rose 0.23 per cent to close at 477.19, the day's highest level.

The southern bourses saw 84 stocks advance, 93 tumble, 89 close unchanged and 40 remain untraded.

The VN30-Index, tracking the southern bourse's 30 largest stocks in term of capitalisation and liquidity, also climbed 0.7 per cent to close at 537.57 points. Market volume more than doubled to 84.3 million shares and fund certificates worth VND1.107 trillion (US$52 million), up 80 per cent.

PVF, the most active share with 24 million shares changing hands, rallied 5.3 per cent to end at VND4,000 per share. The company will be delisted next Monday in preparation for its September 24 merger with Western Bank.

IJC came second with 10.4 million shares changing hands, rising 3.45 per cent to end at VND5,600 per share. It was followed by Pha Lai Thermal Power Joint Stock Company (PPC) which closed at VND19,100 with trades of 8.7 million shares.

At the close, 11 stocks were traded at the upper limit, which was capped at seven per cent by market regulators.

The Ha Noi Stock Exchange climbed for a second straight day, narrowing the loss this week, as surging trade volume boosted investor sentiment.

Investor confidence has improved in recent days, as the market is believed to be in a bottoming phase. A boom in trading volume in a bottoming phase typically signals a rally near term.

The HNX-Index increased 0.3 per cent to end the day at 59.17. The gauge slumped 1.7 per cent this week but rose 3.6 per cent in the year to date.

The HNX 30 Index, comprising of the top 30, shed 0.65 per cent to finish at 108.64 points.

Market breadth was neutral on the Northern exchange. Among index members, 77 stocks rose, 75 tumbled, 66 closed unmoved and 168 were untraded.

Sai Gon Ha Noi Bank (SHB), the most active share with 37 million shares traded, rallied 1.5 per cent to end at VND6,800 per share.

Vinaconex Group (VCG), came second in liquidity with 15 million shares changing hands and declined 1.32 per cent to settle at VND7,500 per share.

PetroVietnam Construction (PVX) leaped 7.7 per cent to end at VND2,800 per share on a trade of 4.7 million units.

On the Ha Noi Stock Exchange, foreign investors concluded the day as net buyers by a margin of VND256 billion, accounting for more than 52 per cent of bourse value.

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