Firm hand on asset tiller buoys market

Wednesday, May 22, 2013 08:36

Stocks on both exchanges rose during this morning's session as a positive reaction to the Prime Minister's decree to establish a national asset managing corporation.— Photo tapchithuongmai
HA NOI (Biz Hub)— The market was given a boost after the Prime Minister approved the establishment of a national asset management corporation (VAMC), which helped maintain the uptrend on both stock exchanges during yesterday's session.

The State-owned corporation, with an initial charter capital of VND500 billion (US$23.8 million), will be responsible for handling bad debts held by credit institutions and is set to begin operations from July 9 this year.

The VN-Index on the HCM City Stock Exchange gained 0.41 per cent to finish the session at 502.23 points.

The market volume was down 25 per cent from the previous session, however, totalling nearly 67 million shares, while the value of trades decreasing 30 per cent to VND1.086 trillion (US$51.7 million).

Blue chips were mixed. Among the top 30 shares by market capitalisation and liquidity, 13 advanced while 12 declined, lifting the VN30 up just 0.23 per cent on 566.79 points.

Vinh Son-Song Hinh Hydro-power (VSH) surprised the market to become the most active code on the southern bourse with 3.53 million shares changing hands. VSH climbed over 2 per cent at VND14,700 ($0.70) a share.

On the Ha Noi Stock Exchange, the HNX-Index grew 1.56 per cent to a close on 62.59 points. Trading value also increased 20 per cent over the previous session, totalling over VND511.3 billion ($24.3 million).

A sudden rise on both markets on Tuesday made many investors cautious over the sustainability of an uptrend, but according to stock analysts at Viet Nam Investment Securities Co, as liquidity remained high yesterday, investors felt more confident in the market.

"Cash flow shifted to the Ha Noi Stock Exchange yesterday as investors sought profits from speculative stocks which have not increased much over the past time," analysts wrote in a note.

Sai Gon-Ha Noi Bank (SHB) was the most active code on the northern bourse on huge trades of 18.9 million shares, edging up nearly 3 per cent to settle at VND7,200 a share.

Other speculative stocks such as Sacomreal (SCR) and PetroVietnam Construction (PVX) also saw active trades with each having from 5.4-6.8 million shares exchanged. SCR rose 1.3 per cent to VND7,900 while PVX climbed 5.8 per cent to VND5,500.

Foreign investors were also net buyers yesterday on both exchanges, picking up shares worth a combined VND47.5 billion ($2.3 million). — VNS

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