Stocks rally past 580 threshold

Jul 4th at 14:04

04-07-2014 14:04:47+07:00

The VN-Index yesterday finally surpassed the "hard" threshold of 580 points after several crashes. It rose 1.07 per cent to close the session at 585.02 points.

Strong local buying pumped up the market when liquidity increased over the previous session. Market volume was up 25 per cent, totalling nearly 131.5 million shares and fund certificates.

The value of trades also went up 20 per cent to more than VND2 trillion (US$94.8 million).

Blue chips recovered as most of the top 30 shares by market value and liquidity gained, pushing the VN30 up 1.12 per cent to end at 627.17 points.

PV Gas (GAS), the main drag of the Index in the previous sessions, yesterday climbed 1.8 per cent to VND111,000 ($5.21) a share.

Other blue chips such as Vinamilk (VNM), Bao Viet Holdings (BVH), FPT Corp (FPT), Hoa Phat Group (HPG), VinGroup (VIC) and Hoa Sen Group (HSG) also advanced.

Realty stocks continued to draw speculative investors as four of the five most active codes were from this sector.

Tan Tao Investment Industry Corp (ITA) was again the most heavily-traded stock in HCM City, with nearly 11.7 million shares exchanged. They increased by 3.66 per cent to close at VND8,500.

According to analysts at FPT Securities Co, investor confidence was boosted by optimistic economic data in the first half of this year, which helped lift the VN-Index to a nearly three-month high.

Investors expect such positive results will be translated into the first-half corporate earnings reports that will be released soon.

On the Ha Noi Stock Exchange, the HNX-Index added another 0.96 per cent to end at 79.66 points and the HNX30 improved by more than 1 per cent to stand at 162.32 points.

Trading was bullish when both market volume and value grew 70 per cent over the previous session, totalling 130 million shares worth VND1.28 trillion ($60.7 million).

Saigon-Ha Noi Bank (SHB) was the most active stock with 10.2 million shares traded. The shares rose more than 1 per cent to settle at VND9,900 a share. In addition, another 32 million shares were exchanged via negotiations.

Foreign investors again concluded yesterday as net buyers on the two stock exchanges, picking up shares worth a combined VND62.7 billion ($3 million).

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