ID :
29024
Sat, 11/08/2008 - 08:47
Auther :

VN-Index inches up with profit-taking

Hanoi (VNA) - Recent days' gains in the VN-Index slowed their pace on November 6, with the Index increasing by only 1.68 points, or 0.44 percent, to close at 379.51.

Since the Index hit a rock bottom of 322.80 on October 28, it had regained
20 percent of its value, causing investors to move on November 6 to take
profits, said Dao Trung Kien, director of analysis at the Vietnam Finance
Information Co.

He said that negative developments on US and European markets on November
5 also had a negative impact on the day's trading, which saw 37 gainers and
113 losers.

Liquidity was strongly improved, however, with trading volume nearly
doubled to 29.6 million shares, for a total value of the day's trades of
953.8 billion VND (56.8 million USD).

Sacombank (STB) led the market, with orders for up to 7.2 million shares,
followed by Hoa Phat Group (HPG), with 1.8 million shares, and Cables and
Telecom Material (SAM) with 1.6 million.

FPT, with 1.3 million shares traded, and PetroVietnam Finance (PVFC), with
1.2 million, were also among the most active shares. PVFC has listed 500
million shares on the southern bourse with a combined value of 5 trillion
VND (300 million USD).

Foreign investors were net buyers in the day's trading, with 2.7 million
shares bought, 1.4 million units sold, and a net turnover of 83.4 billion
VND (5 million USD).

Viet Dragon Securities Co general director Nguyen Mien Tuan said that,
while he expected the market's capitalised value would increase by 8-9
trillion VND (475-535 million USD) in November, it was unlikely that the
market would see a firm rally during the month, despite a more stable
economic environment and companies continuing to maintain good business
results.

"Foreign investor demand may not rise, and may even decrease, in the short
term," Tuan said. " With strong declines in global stock markets,
international investors have many opportunities to restructure their
investments, and emerging markets may not be of their priorities now."

Tuan figured that "demand here will depend largely on domestic investors"
but cautioned that tight credit and competition for local investor attention
from the real estate market might restrict demand for securities. He noted
the ongoing oversupply of shares on the market and said, "Too great a supply
may negatively affect the market in the short term."

In Hanoi on November 6, the HASTC-Index lost 3.11 points or 2.48
percent, to end the day at 122.12, with 36 shares advancing and 107
declining. About 20.3 million shares changed hands on a turnover of 622
billion VND (37 million USD).

Most active on the northern bourse were Kim Long Securities (KLS), with
3.37 million shares traded, and Asia Commercial Bank (ACB), with 1.93
million. PetroVietnam Insurance (PVI) and Petroleum Technical Services Corp
(PVS) were next with around 1.7 million shares each changing hands.

Asia Commercial Bank has received a go-ahead to list 200 million
additional shares with a combined value of 2 trillion VND (120 million USD)
on the Hanoi market.-Enditem

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