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Endorsement of US rescue plan restores calm on Vietnam market
Calm was restored to the Ho Chi Minh Stock Exchange Thursday after the US Senate endorsed a revised US$700 billion plan to tackle the financial crisis, analysts said.
The VN-Index of 160 leading firms and four closed-end funds on the exchange rose 5.84 points, or 1.29 percent, to close at 460.25.
Nguyen Hai Son, broker at HCMC-based FPT Securities Company, said investor sentiment was boosted Thursday by rallying Asian stock markets, which reacted to the US Senate move. Son said it was impossible to predict the short-term market moves when global events were able to create wild swings in investor confidence.
Hong Kong recorded a rise of more than one percent, while Singapore was also better off, lifting 0.2 percent. In other markets New Zealand rose 1.4 percent, the Philippines gained 1.68 percent and Thailand closed 0.55 percent higher.
Son also said that Thursday’s recovery of financial stocks – including Saigon Thuong Tin Commercial Bank (STB) and Saigon Securities Inc (SSI) – showed investors recognized Vietnam’s banks were affected by the global financial turmoil.
Saigon Thuong Tin Commercial Bank, the HCMC exchange’s only listed lender known as Sacombank, rose for a second day, gaining VND900, or 3.8 percent, to close at VND24,900. Saigon Securities Inc., the country’s largest brokerage, posted a VND1,000 rise, or 1.9 percent, to close at VND53,500.
Nguyen Ngoc Thuc, chief broker of Empower Securities Corp, meanwhile, said investors were still cautious because of international financial events. “The market has fluctuated this week as investors have been hesitant to participate in the market,” Thuc told Thanh Nien Daily. “I expect the Vietnamese market will start to rise only when the international markets are stable for at least one or two months.”
Stocks’ performance
Trading volume was 15.6 million shares. Of the index’s members, 123 rose and 26 fell.
Sacombank remained the most active stock by volume, with more than 1.8 million shares exchanging hands.
Thu Duc Trading and Import Export Joint Stock Company (TMC) was the biggest mover, rising by the daily maximum limit of 5 percent, or VND1,700, to close at VND35,000.
The firm, which specializes in trading petrol, diesel and construction steel, announced pretax profit in the first eight months of the year reached more than VND25 billion (US$1.5 million), 25.45 percent more than the company’s earnings target for the whole year.
Saigon Garment Manufacturing Trade Joint Stock Company (GMC) was the worst performer, dropping VND900, or 4.74 percent, to close at VND18,100.
Foreign investors sold heavily to take profits, notching up VND95 billion ($5.7 million) in net sales. Among the stocks they sold the most were oil drilling PV Drilling (PVD), telecommunication material supplier Sacom (SAM), PetroVietnam Fertilizer and Chemical Joint Stock Company (DPM), steel maker Hoa Phat Group (HPG), Saigon Securities Inc (SSI) and resort operator Vinpearl (VPL).
On the Hanoi exchange, the HASTC-Index see-sawed before closing 3.26 points, or 2.18 percent higher at 152.96.
Thanhnien
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