Penny stocks help lift market

HA NOI _ Increased buys in penny stocks helped lift stock indices yesterday, with the VN-Index closing at 430.72 points, a gain of 1.2 per cent.

Overall, the volume of trades on the HCM City Stock Exchange remained steady at 34 million shares, worth a total of VND681.3 billion (US$32.4 million).

Cotec Construction (CTD), HCM City Metal (HMC) and Mien Trung Petroleum Construction (PXM) were among penny stocks to each rise to the top of their 5-per-cent regulated trading bands.

"The rally today was caused by penny stocks," said Nguyen Hong Hanh, a HCM City broker. "This signaled that ‘hot money' had come back to the market after five declining sessions," Hanh said, suggesting a possible short-term rally.

Four of the 10 leading shares by capitalisation also managed gains, including Hoang Anh Gia Lai (HAG), up 4.76 per cent; Phu My Fertilisers (DPM), up 3.88 per cent; Hoa Phat Group (HPG), up 1.64 per cent and software producer FPT, up 0.73 per cent.

Sacombank (STB), the most-active share on the bourse on a volume of 2.5 million, closed off by 1.41 per cent.

On the Ha Noi Stock Exchange, the HNX-Index rose by an even more impressive 2.93 per cent, poking its nose back above its basic level to close at 100.59 points.

The value of trades, however, remained meagre, at VND482.5 billion ($23 million), on a volume of 28.3 million shares.

PetroVietnam Construction (PVX) – the most-active share with 3.1 million traded – was among nine of Ha Noi's top blue chips to post gains on the day.

Source: vnagency.com.vn