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Stock Market

VN-Index gains on stimulus package, rate cuts [22/12/2008] 

A flurry of activity late in the trading day on Friday allowed the VN-Index to end the day and the week in positive territory, raising the hopes of investors for brighter trading this week.

A strong showing by a handful of blue chips, in particular, helped lift the market from a close of 299.54 the previous week to 307.26 on Friday.

Song Da Industrial Zone Urban Development and Investment Co (SJS) recorded the highest gain on the week, rising 22.54 per cent to close at VND56,000, followed by Imexpharm Pharmaceuticals (IMP), up 16.13 per cent to VND72,000, and Phu My Fertilisers (DPM), up 12.46 per cent to VND37,000.

Trading was also active for such key shares as Sacombank (STB), with 11.16 million shares straded; Sai Gon Securities Inc (SSI), with 4.24 million; and PetroVietnam Finance (PVF), with 2.77 million.

Overall trading volume on the HCM City Stock Exchange for the week was 54 million shares, worth VND1.31 trillion (US$77.98 million), a healthy increase of 10.6 per cent in volume and 19.98 per cent in value over the previous week.

Early in the week, the Government raised the possibility that the economic stimulus package would be as high as US$6 billion, instead of the originally announced $1 billion, news which turned out to be supportive to the stock market.

"When this package be comes effective, helping the business sector run more smoothly, the stock exchange will warm up again," said Nguyen Hoang Bao, deputy head of the economic development section at the National Economics University in HCM City.

Vincom Securities analysts also believe that investors have come to understand how much the global economic crisis will impact the country and have returned to stock investments alongside other strategies to make money.

A Kim Eng Viet Nam Securities report last week, for instance, noted the steady trading in penny stocks over recent sessions. The report suggested that investors could make substantial returns, if they closely tracked the timing of fluctuations in these shares. "Still, no more than 20 per cent of your portfolio should be invested in shares of this kind," the report said.

Foreign investors last week also returned to being net buyers, with a net purchase of 1.61 million shares, worth a net VND168.89 billion ($10.1 million). Active purchases by overseas investors helped console domestic investors, who had begun to worry that the Vietnamese exchange was becoming less attractive, a concern reinforced by the International Finance Corporation (IFC) announcement mid-week that it would sell a large portion of its stake in Sacombank.

By Friday, investors appeared to have accepted reassurances from the IFC that the shares would not be dumped on the market, but would be sold by negotiation directly to a strategic investor.

Meanwhile, the coming week’s market is likely to be heavily influenced by the initial public offering (IPO) of one of the four leading State-owed banks, VietinBank.

The IPO, in which over 53 million shares will be offered at an initial price of VND20,000 each, is slated for Christmas Day on the HCM City Stock Exchange.

While An Binh Securities Co acting director Nguyen Hong Quan thought the IPO would be a chance for investors to define market psychology at year’s end, veteran investor Hung Long in Ha Noi noted the poor performance of late IPOs last year and said, "I don’t think the VietinBank IPO will be lively or eventful."

Foreigners were unlikely to participate, he noted, due to the unlikely scheduling of the share auction on Christmas Day, he said.

Vincom Securities analysts seemed to echo the sentiment, attributing last week’s better stock market performance to a positive reaction to the State Bank’s move to cut the prime interest rate from 10 to 8.5 per cent and predicting that any market gains this week would not be prominent enough to establish any year-end trend.

In Ha Noi last week, the HASTC-Index also saw some overall gains on the week, picking up 1.7 per cent to end the week at 107.70, on a total volume for the week of 33.2 million shares, worth a total of VND721.7 billion ($42.9 million). — VNS

 

Các tin đã đăng:
Index charges back above 300-points [16/12/2008]
VN-Index tracks global market gains [10/12/2008]
Index falls to 288 on weak demand [10/12/2008]

 
 

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