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Stocks follow Wall Street up, but sentiment still depressed
Ho Chi Minh City shares edged up Friday as they tracked a strong rally overnight on Wall Street triggered by bargain hunting.
The VN-Index, Vietnam’s main stock index, opened strongly thanks to heavy buying, and ended the first session 3.32 percent higher at 357.75 points. But the second session saw the index give up some of its gains before it finally closed 5.83 points, or 1.68 percent, up at 352.07 points.
Trading volume fell to around 14 million shares from Thursday’s 16.2 million. Gainers led losers by 100 to 38 with 31 stocks remaining unchanged.
Nguyen Manh Toan, deputy CEO of VinaGlobal Securities Corporation, told Thanh Nien Daily investors’ sentiment remains strongly influenced by the US market and they also tend to follow foreign investors here.
Since long-term investors are not confident about the market rebound yet, they are not buying heavily.
Meanwhile, some speculators sold shares to book profit, pulling the index down in the second session, he explained.
“It is now a good time to buy as many shares are being traded at below book value,” he said.
Saigon Thuong Tin Commercial Joint Stock-Bank, or Sacombank, the exchange’s only listed lender, remained the most active by volume, with nearly 2.5 million shares traded.
“This week's trading was mostly affected by outside factors. Vietnamese investors are now closely watching every move by US investors,” Khong Phan Duc, head of market research at Hanoi-based EuroCapital Securities Co., said.
“Foreigners were net sellers of equities and bonds throughout this week, and that exacerbated investor uncertainty,” he said.
“The market may not rise above 400 before the end of the second quarter because of the lack of concrete signs of support. That said, shares of coal, electricity and steel producers are recommendable as the government is very likely to allow an increase in prices of these commodities next year.
“The demand for steel may also increase after months of sluggishness in the construction sector.”
Stock performances
Domesco Medical Import-Export Joint-Stock Company, a pharmaceutical manufacturer and trader, gained VND1,500, or 2.75 percent, to close at VND56,000. The company will pay a dividend of VND1,000 per share next month, according to a statement filed on the stock exchange's website Friday.
Cat Loi Joint-Stock Company, a cigarette maker, climbed VND800, or 4.73 percent, to close at VND17,700. The company’s profits for the first nine months to September were nearly VND38 billion (US$2.2 million).
Vien Lien Joint-Stock Company, a telecom equipment maker, rose VND700, or 4.61 percent, to close at VND15,900, after saying it will buy back 220,000 shares.
Bach Tuyet Cotton Joint-Stock Co. a cotton-products manufacturer, advanced VND100, or 1.72 percent, to close at VND5,900. The company expects to resume production on November 20 after reaching an agreement with suppliers and distributors, Bach Tuyet General Director Ta Xuan Tho said.
Thao Vi
Bloomberg
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