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VN-Index continues climb after foreigners buy again
Ho Chi Minh City shares Friday advanced the most in two weeks – though it still finished below the crucial 300-point mark - as foreign buying for the first time this month boosted investor confidence, dealers said.
The VN-Index rose 10.61 points, or 3.67 percent, as advances outnumbered declines by 158 to 8. Six stocks remained unchanged.
On Wednesday and Thursday, foreign investors were net buyers, pumping more than VND67.6 billion (US$4 million) into the market after earlier being net sellers every single day in December.
But Friday they went back to their selling ways, shedding stocks worth VND3.2 billion.
Many blue chips like Sacombank, software maker and mobile phone distributor FPT and Saigon Securities Inc., climbed by almost the daily allowed limit of 5 percent to rev the index up.
Fiachra Mac Cana, managing director of Ho Chi Minh City Securities Corp. said, “If there is a rally in the stock market here in the next few weeks, it will be a trading rally rather than a real bottom of the market.
“Of the top 20 listed companies, over a third is above target, one third is on target and the other third is less than target. Earnings next year will be much more difficult.
“We might see a short-term rally in the next few months to above 300 or 340. In January and February, the market will fall again to 250. Sometimes in February and March, you will get the best chance to buy into the market. Banks will start putting money in the equity market.”
Sacombank, or Saigon Thuong Tin Commercial Joint-Stock Bank, gained VND900 to close at VND19,000, its steepest gain since March 6. The Ho Chi Minh City-based bank said it plans to execute 10 percent of its 25-million share buyback plan every day, from Friday until December 18, Thoi Bao Kinh Te Vietnam reported. The lender previously registered to buy back 25 million shares by December 18 at a maximum of 5 percent of the shares a day.
Alphanam Joint-Stock Co., a manufacturer of electronic equipment, gained VND400, or 4.7 percent, to finish at VND8,900. The company’s deputy CEO Do Thi Minh Anh registered to buy 1.74 million shares by June next year to raise her holdings to 7.8 million shares, according to a statement filed on the exchange’s website.
Truong Thanh Furniture Joint-Stock Group, advanced VND500, or 4.3 percent, to VND12,100. Deputy CEO Ngo Thi Hong Thu registered to buy 20,000 shares by March next year to increase her stake to 0.73 percent from 0.6 percent.
Global stocks
Global stock markets Friday tumbled as fears mounted of a collapse of the big three US automakers after the US Senate refused to throw them a financial lifeline, traders said.
The Japanese benchmark ended down 5.6 percent as exporters reeled from the stronger yen, which undercuts their overseas earnings.
Hong Kong shares closed down 5.48 percent, Seoul dived 4.38 percent and Sydney was off 2.4 percent.
In early European trade, London dived 4.07 percent, Frankfurt tumbled 4.16 percent, Paris lost 4.74 percent, Madrid gave up 3.93 percent and Zurich lost 3.91 percent.
Thao Vi
AFP, Bloomberg
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