by Mai Huong

Investors monitor shares at A Chau Securities Co. Trading was busy on the HCM City Stock Exchange yesterday with nearly 70.3 million shares, worth VND1.46 trillion (US$69.5 million), changing hands. — VNA/VNS Photo Tran Viet

HA NOI (VNS)— After an explosion yesterday morning with the VN-Index touching 514 points, several blue chips retreated in the afternoon, pulling the index to close at 509.43 points.

On the HCM City Stock Exchange, trading was busy with nearly 70.3 million shares, worth VND1.46 trillion (US$69.5 million), changing hands – an increase of 30 per cent in volume and 15 per cent in value compared to the previous session.

Investors became more confident when the VN-Index surpassed the important psychological landmark of 500 points on Monday.

However, many analysts fear that this was the result of blue chip increases that may not last because investors will soon sell for higher prices to lock in profits.

Several large caps profited during yesterday's session, such as steelmakers Hoa Sen Group (HSG) and Hoa Phat Group (HPG), Saigon Securities Inc (SSI) and Refrigeration Electrical Engineering (REE), which all saw more than one million shares traded.

While HSG closed at its ceiling price, other stocks finished lower than the peak prices they set in the morning.

However, the VN30 went up 1.15 per cent to 573.5 points, with 19 of the top 30 shares led by market capitalisation and liquidity climbing and only three codes declining.

Vietinbank (CTG) was the most active code yesterday with 7.5 million shares, of which foreign investors bought 2.2 million for an amount that was nearly the ceiling price, helping lift the shares by 4.7 per cent to VND20,000 a share by the end of the session.

According to analysts of FPT Securities Co, the reason for the rally remained vague but the continued rise of blue chips encouraged investors to take part in the equity market.

"The equity market seems to be one of a few potential markets for investors for the time being, as interest rates are lower, the real estate market remains stagnant and gold trading is restricted," they wrote in a report.

Meanwhile on the Ha Noi Stock Exchange, the HNX-Index declined abruptly in the last minutes, losing 0.68 per cent to finish the session at 61.09 points.

More than 49.5 million shares worth nearly VND418.2 billion ($19.9 million) were traded. Sai Gon-Ha Noi Bank (SHB) continued to claim the position of the most active code nationwide on trades of 10.9 million shares, but edged down 1.45 per cent to VND6,800 a share.

Foreign investors also participated actively in the market yesterday, concluding as net buyers on both exchanges. They were responsible for a combined net buy of nearly VND235 billion ($11.2 million). — VNS