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VN-Index peers above 500
The HCM City Stock Exchange closed out the Year of the Ox yesterday with the VN-Index back above the 500-mark, as the VN-Index picked up 1.4 per cent to end the session at 507 points.
The value of the day's trades edged over VND1 trillion (US$54.5 million) on a volume of 22.9 million shares, with market-leader Sacombank (STB) accounting for 2.5 million of the total.
On the Ha Noi Stock Exchange, the HNX-Index also rose by 0.86 per cent to a close of 164.66, although trading volume remained a very meagre 8 million shares, worth a combined VND254.25 billion ($13.7 million). Kim Long Securities (KLS) continued to be the most-active share on the northern market, with a volume of 1.7 million.
Fiachra Mac Cana, head of research at HCM City Securities Co, said that the market reacted positively to the devaluation of the dong, a surprising if inevitable reaction. As a consequence, a small rally could appear within the current trading range, he said.
"The return of buy orders in a higher-priced zone since yesterday has encouraged investors to buy more," said Nguyen Duy Tan, a broker with a Ha Noi-based securities firm.
The stronger buys were reinforced by positive moves on global markets, which encouraged foreign investors to become net buyers on the day, Tan said.
Foreign investors picked up a net of 1.5 million shares on both markets yesterday, worth a net of VND110.6 billion ($6 million).
But Tan also noted that sell decisions were also in higher-price zones yesterday, reflecting potential concerns over market prospects following this coming week's break for the Tet (Lunar New Year) holiday.
He said investors would be looking to the central bank's decision on the prime rate after the holiday.
"This is the second time this month that the VN-Index has surpassed 500. If the prime rate is left unchanged, I believe the market could rally after Tet," he said.
The stock exchanges will be closed for one week for the holiday, with trading to resume on February 22.
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