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VN-Index rebounds on new-listing excitement
The VN-Index bounced back above the 500-mark level yesterday, August 19, gaining 1.76 per cent to close at 508.46 on a solid trading volume of 42.52 million shares on the HCM City Stock Exchange, worth a combined VND1.68 trillion (US$94.9 million).
While Sacombank (STB) remained the most-active share, with 3.5 million traded, the exchange yesterday also welcomed a new listing of 60 million shares by DIC Investment and Trading Co at an initial price of VND17,800.
"The rebound was predictable on the slower rate of profit-taking late in yesterday's session," said independent analyst Nguyen Van Dung.
"But the rally will remain short," he said, pointing to the weak gains of major shares like STB and Vietcombank (VCB).
On the Ha Noi Stock Exchange yesterday, the HNX-Index continued advancing for a second day, picking up 1.62 per cent to close at 158.95 points. The value of the day's trades on the northern bourse rose to VND781.65 billion, ($43.9 million) on a volume of just over 25 million shares.
Most active share was newly-listed PetroVietnam Construction (PVX), with 5.2 million traded.
The northern market saw three newly-listed stocks yesterday with a combined 163 million shares, including PVX, Da Nang Educational Development & Investment Co (DAD) and Southern Educational Investment & Development (SED).
"Short-term trades are becoming the current trend on the market, especially when the market is absorbing a significant volume of newly-listed shares," said Dung.
Meanwhile, global markets were losing ground as skepticism grew over economic recovery prospects, and the domestic market seemed to be relying on global moves, he said.
SME Securities Co analyst Hoang Thach Lan suggested investors pick shares of listed firms paying high dividends, or shares in firms with plans to conduct a stock split.
"Another choice is shares with a dividend yield on the year's earnings higher than bank interest rates, as these offer a long-term perspective," he said.
Foreign investors were net sellers on both stock exchanges yesterday, selling a combined 1.4 million shares.
"This sector has begun looking for cash," Dung said, attributing their sales to doubts over the global economic recovery.
"However, foreign-invested trades will not be influential on domestic market moves," he said, "so long as they continued buying high-potential shares on both exchanges."
VietNamNet, VietNam News
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