Volume up, shares off in HCM City

10:07 | 20/10/2010

Hanoi - The Wall Street rally overnight could not prevent the VN-Index from shedding 0.73 per cent yesterday to close at 454.25.

About 198 of 268 listed stocks on the HCM City Stock Exchange declined – 22 hit the floor price. They were Hari Hamico Mineral (KSS), down 1.5 per cent to VND29,400; Sao Vang Rubber (SVR) and Tai Nguyen Corp (TNT), each down 1.2 per cent to VND24,300 and VND23,500, respectively.

Only three blue chips managed to gain, including property trader Vincom (VIC), up 3.17 per cent; Masan Group (MSN), up 0.9 per cent; and Bao Viet Holdings (BVH), up 0.79 per cent. Foreigners were the main force behind stock rallies, buying 187,190 BVH shares, 97,250 VIC shares and 23,630 MSN shares.

Total volume on the day's trade on the southern market rose to 32 million shares, worth VND880.2 billion ($45.1 million).

In Ha Noi, the HNX-Index surged 1.96 per cent to 116.56 points, with decliners outnumbering advancers by 253 to 39.

No blue chips gained, while only two stocks hit the ceiling – Ha Noi Textbooks Printing (TPH), up 0.5 per cent to VND8,700; and PetroVietnam Southern Gas (PGS), up 2.5 per cent to VND38,300.

Volume of trade reached 27.8 million shares, up from 17.3 million on Monday, posting a turnover of VND587.5 billion ($44 million).

Nguyen Cong Chinh, head of the investment department at a Ha Noi-based securities firm, said the increase in the share volume was due to sellers accepting lower prices. "This resulted in an even steeper dip," he said.

Chinh said the State Bank's announcement that it would not change the exchange rate would help calm investor volatility.

"Along with attempts to lower the deposit rate, if the inflation rate released is as low as predicted, market sentiment will cheer up," he said.

Foreigners continued to be net-buyers, accumulating a total of 2.3 million shares on the two bourses, worth VND88.1 billion ($4.5 million).

"The current situation is suitable for long-term investment and a high-portfolio. Investors should focus on well-performing businesses."

Ten listed companies fulfilled their yearly profit target in the first nine months of 2010. Most of the best performing firms were in the building materials, sugar, rubber and food processing sectors.

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