Stocks made a surprise recovery on the HCM City Stock Exchange yesterday, with the VN-Index gaining 2.55 per cent to end the day at 482.49 points. The value of the day's trades rose sharply to VND976.9 billion (US$45.4 million), with a total volume of 46.1 million shares.
HA NOI —
"There wasn't any news today, so we were surprised by such a happy session," said Nguyen Thanh Binh, head of research for a Ha Noi-based securities company, suggesting that investors had reacted to exceedingly low share prices with an explosion in demand.
A group of penny stocks and mid-cap shares performed particularly strongly during the session, Binh said, noting that stocks that recovered most strongly yesterday were those which had hit bottom in the five prior sessions.
Half of the 233 gainers yesterday saw prices hit the ceiling, including insurer Bao Viet Holdings (BVH), up 4.8 per cent; Tu Liem Urban Development Co (NTL), up 4.5 per cent; resort developer Vinpearl Land (VPL), up 4.4 per cent; and PetroVietnam Drilling (PVD), up 3.8 per cent.
Shares in securities companies Saigon Securities Inc (SSI) and HCM City Securities (HCM) also recovered strongly, while banking shares gained by an average of 1.3 per cent over the previous day's session.
On the Ha Noi Stock Exchange yesterday, the HNX-Index rose by an even more substantial 4.36 per cent to close at 92.31 points. However, volume remained low at 32.1 million shares, worth a total of VND464.4 billion ($21.6 million).
Out of 266 gainers on the northern market, 90 hit their ceiling prices, including Bao Viet Securities (BVS), up 5.6 per cent; Kim Long Securities (KLS), up 5.4 per cent; APEC Securities (APS), up 5.3 per cent; and VNDirect Securities (VND), up 5.2 per cent.
Foreign investors contributed subsantially to yesterday's rally. They bought up over VND124 billion ($57 million) in shares, focusing buys on blue chips such as VietinBank (CTG), PVD, Phu My Fertilisers (DPM) and BVH. — VNS