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Sugar sweetens VN-Index; Ha Noi remains sour
Stocks of sugar producers soared to their ceiling prices on Monday, helping the VN-Index to reach 506.84 points at the close of trading on the HCM City Stock Exchange, an overall gain of 0.12 per cent.
Listed sugar producers saw share prices bump their heads against the top of regulated trading bands, including Lam Son Sugar Company (LSS), Bien Hoa Sugar Company (BHS), Sucrerie Bourbon Tay Ninh (SBT), Ninh Hoa Sugar Company (NHS) and Gia Lai Sugarcane and Thermopower Company (SEC).
Attributing the spike to reported increases in domestic sugar prices, Nguyen Huu Quang, a broker with a Ha Noi-based securities company, said, "The rises are temporary but will work well enough to prevent the stock market from undergoing a decline at the beginning of this week."
The overall value of trades on the HCM City stock market yesterday dropped 7.14 per cent from Friday's session to VND1.3 trillion (US$68.4 million) on a volume of 43.2 million shares. Sacombank (STB) remained as the most active share, with 2.3 million traded.
PetroVietnam Securities Company analyst Le Thanh Tung forecast that the VN-Index would move within a narrow band this week, although the avance late last week and the flow of capital toward some blue-chip shares was a good overall sign for the market trend. Therefore, he said, the VN-Index could reach its current resistance point of 515 by the end of the week.
A few blue chips advanced yesterday on the HCM City exchange, including property developer Vincom (VIC), up 2.22 per cent; Vietcombank (VCB), up 0.77 per cent; and Sacombank (STB), up 0.59 per cent.
Without the assistance from sugar stocks or blue chips, shares declined overall on the Ha Noi Stock Exchange yesterday, with the HNX-Index closing off nearly half-a-per cent to 160.37 points.
Trading volume was approximate to that on the southern bourse, however, with 42.4 million shares changing hands. The value of trades on the Ha Noi market reached VND1.25 trillion ($65.8 million), with Kim Long Securities Company the most-active share on a volume of 3.5 million.
Foreign investors was net sellers in Ha Noi, selling off 100,000 shares worth a combined VND7.8 billion ($410,562). Meanwhile, they continued as net buyers on the HCM City Stock Exchange by a net of 780,000 shares worth VND52.8 billion ($2.8 million).
Investors had become skeptical of the market advance and were only ready to participate in the low-price end of the market, said Tai Viet Securities Company analyst Nguyen Quang Minh.
The capital influx hadn't been supportive enough for the market to rally, he said, and interest rates remained high, with commercial banks unwilling to lend against securities.
"As a result, the waves in the market will continue to focus on penny stocks, as well as a few companies with particularly strong business results," Minh said.
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