Strong buying sends stocks higher
By Phuong Thao - The Saigon Times Daily
HCMC – The local market moved up strongly for a second straight session on Wednesday as investors rushed to buy low-priced real estate and financial stocks, thus lifting the VN-Index up 7.22 points, or 1.55%, against the previous day to close at 472.87.
The market gained in early trade but fell back before reversing direction and going on a run, which took the index higher by several points at the end of the morning session. The afternoon session saw a continuation of the positive mood and before closing just around one point below the daily high.
Trading on the southern exchange was almost flat with 88.1 million shares worth nearly VND1.3 trillion changing hands. Buy orders remained huge on the bourse with 59 million bids unmatched.
Gainers far outnumbered losers by 223 to 49 while 36 stocks closed at the reference prices. BVH and DPM together contributed 1.9 points to the market.
Sacombank Securities Co. (SBS) again led the market in terms of liquidity, hitting the ceiling price of VND6,400 per share on the volume of 6.8 million shares, followed by Ocean Group Company (OGC), which jumped 2.5% against the previous day to VND16,700 with three million shares traded.
The VN30 Index jumped around 7.89 points, or 1.48%, to 542.8 with no laggards and 26 advancers. Foreign participation remained low, at 8.3% of total trading and their net buying was also minimal.
Viet Capital Securities Co. said in its report on Wednesday that the market soared on the central bank’s latest moves to help businesses in need of capital or straddled with debt. In the newly released Document No. 2506/NHNN-CSTT, the State Bank of Vietnam wants commercial banks to reschedule bad loans and re-classify special loans that had been extended.
The document also mentions revising down lending rates to key industries such as agriculture, import and export, supporting industries, SMEs and labor-intensive industries. And banks may consider writing off part of loan interest payments for businesses in financial distress.
The Hanoi market also advanced while liquidity continued to climb 27% in volume and 16% in value to 85 million shares worth VND847 billion. The HNX-Index rose a slight 0.98 point, or 1.25%, from the session earlier and ended the day at 79.55.
Advancers outnumbered decliners fivefold at 247 to 46, of which 75 went limit-up. HBB was the leader in terms of volume and value with 11 million shares worth VND78 billion traded.