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Low inflation figures help lift shares
Ignited by lower-than-expected inflation data for HCM City and Ha Noi in April, blue chips rebounded on Friday, lifting indices for the week on both national stock exchanges.
On the HCM City Stock Exchange, the VN-Index broke through the 520-mark again to close out the week at 529.31, an increase of 1.39 per cent from the previous week's close.
Average daily trading value rose by 20.46 per cent to reach over VND2.3 trillion (US$121.1 million), while volumes grew by 19.33 per cent to an average of more than 60.7 million shares per day.
On the Ha Noi Stock Exchange, the HNX-Index closed a week of gaining sessions on Friday at 178.33, up a total of 3.32 per cent. On Wednesday, both the value and volume of trades on the northern market surpassed those of the HCM City market.
The average daily trading value on the northern bourse soared by nearly 41 per cent to VND2.2 trillion ($115.8 million) on an average volume of over 61.7 million shares, an increase of nearly 35 per cent over the previous week.
"Favourable economic data, positive developments on world stock markets, and rising speculative investment drove the local stock market's growth last week," said FPT securities analyst Le Thi Bich Hang.
Inflation in April of under a quarter of a per cent in both of the nation's leading cities helped ease investor worries about high inflation which could have forced the State Bank of Viet Nam to further tighten monetary policy, Hang said.
Seizing on the positive news, many investors strongly increased their holdings this past week, especially boosting volumes and value on the exchanges in the last two trading days of the week.
More investors were looking to global markets to guide their investment decisions, Hang observed, noting that declining shares earlier last week tracked negative moves on the New York Stock Exchange.
A rising tide of speculation on penny stocks throughout the week helped sustained the local market, and many small-cap shares have risen by more than 50 per cent in value this month, Hang said.
However, late last week, the market welcomed a strong rally of blue chips, with most large caps on both exchanges registering gains, including Saigon Securities Inc (SSI), Gemadept (GMD) and Song Da Urban and Industrial Zone Investment and Development (SJS).
"Once investors see what they want, they are likely to return to blue-chips," said Au Viet Securities Company Deputy Director Nguyen Anh Thi.
Hang predicted that shares on the Ha Noi market this week would continue to rise for several successive rising sessions but would experience a correction at some point during the week.
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