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Friday lifts market from dismal week
A strong rebound on Friday helped the VN-Index end last week just below the magical 300-barrier, after the HCM City Stock Exchange hit a new rock bottom earlier in the week.
The Index closed out the week at 299.54, a mere 0.14 point higher than the previous Friday's close. Volume averaged around 9.1 million shares per day, up 17.8 per cent over the previous week's average, but still sluggish - while daily turnover averaged VND210 billion (US$12.7 million), an increase of 9.2 per cent.
The averages don't tell the whole story, however. Only Friday's significantly improved volume helped the daily average for the week from hitting a six-month low.
Activity concentrated mostly in a few major shares, with Sacombank (STB) generating orders for 9.9 million shares, followed by Saigon Securities Inc (SSI) with 2.8 million shares, and Refrigeration Electrical Engineering Corp (REE) with 2.3 million.
Little occured during the week to shore up the confidence of domestic investors, with the Ministry of Finance approving another cut in petrol prices as well as finalising a $1 billion economic stimulus plan - and neither move having much impact on the market.
Foreign investors last week were net buyers of about 300,000 shares, with a net value of VND46 billion ($2.8 million). Foreigners were net sellers in the previous week of VND188 billion ($11.4 million).
"The net buy was not significant, but it encouraged investor sentiment," said Tran Quang Vinh, an analyst with FPT Securities Co.
Among the few bright spots in last week's trading, according to FPT Securities data, were shares in the retail sector, gaining 9.1 per cent, followed by financial services, up 5.23 per cent, and chemicals shares, up 4.82 per cent. Tourism and entertainment shares declined the furthest, dropping 3.63 per cent on the week.
Vinh expected the market to continue to tread water this week, ranging between 286 and 319 points. He said market volumes would remain low on weak demand.
FPT Capital general director Phan Duc Trung said it was unnecessary to hastily spur market demand, however. What should be done, he said, was to intensify standards of corporate transaparency and to develop a legal framework for securities derivatives such as short sale, margin and option.
Vinh said a level market would facilitate long-term investments, and he expected more money to flow into the stock market as interest rates dropped.
"News about companies as well as the macro-level environment is very important at this time," he said, noting that listed firms' year-end business results, developments related to the Law on Corporate Income Tax, and the pending initial public offering (IPO) of Vietinbank were all of interest.
In Ha Noi, the HASTC-Index picked up 2.2 per cent over the previous Friday's close, ending the week at 105.9 points. Total trading volume reached 31.78 million shares on a turnover of VND746 billion ($45.2 million).
Market leaders - including Asia Commercial Bank (ACB), Petroleum Technical Services Corp (PVS) and Vinaconex Group (VCG) - maintained stability, helping prop up the index, Vinh said.
The index was expected to range between 97 and 14 point marks in this week, he said.
Viet Nam News
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