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Shares sizzle on investor optimism
Investor optimism, buoyed by a rallying Wall Street and Chinese economic data, contributed to gains on the Ho Chi Minh stock market on April 16, with the VN-Index recovering from the previous day’s profit-taking to close at 343.88 – a 1.35 percent increase.
The day’s trading volume was heavy, with 41.67 million shares changing hands for a combined value of 1.16 trillion VND (65.4 million USD).
Sacombank (STB) was easily the most-heavily traded share, accounting for 16.78 percent of the market’s total value on April 16, with 8.2 million shares traded, worth 192.36 billion VND.
The market was experiencing hot growth due to the optimism of local investors for economic recovery, suggested John Nolan, an analyst with a HCM City-based fund management company.
“The Government’s stimulus package has begun showing success,” he said.
Nolan said investors should be careful and should absolutely not pour all of their capital into securities when they see this channel heating up.
“Investors should divide capital at a ratio 30; 30; 40, with 30 percent for securities, another 30 in other channels and the rest in cash or in banks,” Nolan said.
Foreign investors on April 16 became net buyers of more than a million shares worth of 28 billion VND (1.6 million USD).
In Hanoi on April 16, the HASTC-Index also rose 1.22 percent to end at 129.45, with 21.35 million traded for a total value of 606.49 billion VND (34.1 million USD). Asia Commercial Bank (ACB) and Kim Long Securities (KLS) continued as the most-active shares on the northern bourse.
Asian stocks in general pulled back from a six-month high on April 16 after economic data from China showed signs of improvement in March. Su-Lin Ong, a senior economist at RBC Capital Markets in Sydney, was quoted by Reuters as saying that the economy was showing signs of greater stability, raising investors’ expectations for a recovery in the second half./.
Vietnamplus
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