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Bottom catchers help hold up VN-Index
Last-minute bottom-catching efforts allowed VN-Index to rise by 0.04 per cent to close at 481.96 on Friday.
Value of daily trade on the southern bourse returned to VND1.02 trillion (US$55 million) on a volume of 24.94 million shares. Nam Viet Seafood Processing (ANV) and Eximbank (EIB) saw the highest favour from traders.
In Ha Noi, the HNX-Index turned around to close at 160.35 points, a negligible advance of 0.65 per cent. Trading activities were busier with 16.27 million shares changing hands, generating a turnover of VND524.1 billion ($28.3 million).
Most active stocks included Kim Long Securities (KLS) with 2.4 million, followed by constructor Vinaconex (VCG).
"Significant purchases of Nam Viet stocks became a phenomenon today, despite posting losses in business results last year," said Nguyen Kim Phung, an investor in PetroVietnam Securities, suspecting an investment trend in companies covered by loss.
The company last year posted VND1.86 trillion ($100.5 million) of turnover, a drop of 44 percent from 2008.
"Trading activities are targeting instant cash returns which can be a productive strategy with risky stocks, and a company like Nam Viet could be a good choice," said Tran Phuong Nam, a broker with a HCM City-based securities firm.
In fact, difficulties in seafood imports and exports during last year, which led to the company’s losses, was reason enough to encourage investors to buy in, Nam said.
Hoang Xuan Quyen, Deputy Director of Tan Viet Securities, said that the macroeconomic situation had not bothered traders but trading had been hesitant, due a general winding down in business transactions in the run-up to Tet.
However, the wait for new derivative tools, which are promised to be applied this year, was also blamed for the unwillingness of many to engage in transactions, he said, pointing to the securities advance sale two days before the settlement period in which the State Securities Commission is expected to bring into effect soon this year.
"Regulators should voice when and how they will apply these tools, this will help settle the issue," said Quyen.
Listed enterprises making additional share issues were also burdening the market extra issuances diluted the value of existing shares, he noted.
Foreign traders remained net-buyers in both stock exchanges, picking up a combined 550,000 shares.
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