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Blue chips rally, help market recover
The Ho Chi Minh Stock Exchange rallied Thursday after two days of sharp falls, with a HCMCbased broker attributing it to buying in blue chips.
The VN-Index of 165 leading firms and four closed-end funds gained 3.91 points, or 1.14 percent, to close at 346.24.
Trading volume reached 16.2 million shares as 88 rose, 40 unchanged and 41 fell.
A broker at FPT Securities Co., Nguyen Hai Son, who had Thursday predicted the market would bounce back this week, said the rally in blue chips boosted investor confidence.
“Sacombank, Vinamilk, [steel maker] Hoa Phat Group and [construction firm] Sudico all gained as investors found their prices attractive after falling sharply for two days,” Son told Thanh Nien Daily.
But he said the buyers were mainly retail investors. “Institutional investors stood on the sidelines as they remained concerned about the capital gains tax clause that takes effect in January next year,” Son said.
Sacombank, which was the most active stock by volume with 2.8 million shares changing hands, was among Thursday’s gainers after ANZ said it would keep its 10 percent stake in the bank. Sacombank edged up 0.87 percent to close at VND23,100.
Vinamilk, the country's third-largest publicly traded company, climbed 4.85 percent to close at VND86,500 after it announced it would sell shares in Singapore. The Ho Chi Minh City-based company said on its website it has received approval from the Singapore Exchange Ltd. to list 8.8 million shares on the bourse, without saying when it will take place.
Foreign investors were net sellers.
Hanoi stock, however, lost 2.37 points, or 2.1 percent, to finish at 110.64.
Vinacomin Coc Sau Coal Joint Stock Co. led gains for Vietnam's listed coal producers after the government said it would raise some user prices for the fuel.
Vinacomin Coc Sau climbed 5.54 percent, advancing for a second day, to close at VND38,300 on the Hanoi Securities Trading Center.
Vinacomin-Nui Beo Coal Joint-Stock Co. gained 4.93 percent to close at VND39,000. Vinacomin Ha Tu Coal Joint-Stock Co. added 6.75 percent to finish at VND17,400, rising for a second day.
Vietnam National Coal-Mineral Industries Group, known as Vinacomin and state-run parent of the three listed units, has received approval from the Ministry of Finance to raise coal prices for producers of fertilizer, paper and cement before November 15, according to a statement posted on the government's website. The prices would be hiked again in April, the statement said.
Nguyen Duc Hung Linh, the Hanoi-based Deputy Head of Analysis and Investment at Saigon Securities Inc, said, “That news helped boost trading in the stocks.”
Hoang Uy
Thanh Nien, Bloomberg
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