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SSI squelches short-sell rumour
Despite a strong rally on Wall Street overnight, the VN-Index on Wednesday posted a second straight day of declines, closing off by just over 1 per cent to 510.85.
Market value on the HCM City Stock Exchange fell slightly from Tuesday's session but was still solid at VND2.23 trillion (US$117.4 million), while volume exceeded 50.5 million shares.
Refrigeration, Electrical and Engineering (REE) edged out Sacombank (STB) as the most active share, with 3.5 million traded, after REE's board of management announced a second cash dividend on 2009 profits of 20 per cent, as well as a plan to offer additional shares to existing shareholders in the second quarter of this year, at a 1:1 ratio. The company has also announced a plan to issue convertible bonds.
On the Ha Noi Stock Exchange, the HNX-Index also dropped yesterday by nearly 2.2 per cent, closing at 168.22. Trading value on the northern market declined sharply to VND1.01 trillion ($53.1 million) on a volume of 30.1 million shares.
Vinaconex (VCG) again claimed the position as the most active share, with nearly 3.6 million shares changing hands.
"The sell-off seems to be easing after yesterday's [Profit-taking] as the attitude on the market further improves positive after rumour on short-sale were settled down," commented Saigon Securities Inc client Hoang Minh, noting that investors murmured about a possible short sale by SSI had been silenced after the brokerage sent a message to its clients yesterday morning denying the rumours.
Dai Viet Securities Company Director Ngo Huu Hung suggested that the rumours had been stirred by Tuesday's heavy sell-off.
But strong trading volumes continued to signal a level of investor enthusiasm for the market that should prevent any steep market declines, Hung said.
He noted that leveraged trading remained an insignificant factor in market values and volumes.
Foreign investors closed the day as net buyers on the HCM City bourse by a net of 1 million shares. Their continued interest in the market, although accounting for a small percentage of total market value, suggested that Vietnamese shares remained attractive investments, a factor that should help shore up the confidence of domestic investors, said Hung.
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