Foreign buys shore up market

HA NOI — Heavy buys by foreign investors helped reheat a cooling market in HCM City yesterday, lifting the VN-Index to a close of 481.78 points, a gain of 0.73 per cent over the previous day.

Foreigners bought a total 14 million shares on the HCM City Stock Exchange yesterday, besting their one-day record for the year set a week earlier on December 17. Their net buys hit a six-month total of 9 million shares, worth a net of VND204.2 billion ($9.7 million).

The buys were enough to rescue the Index from a decline earlier in the session.

"The sharpness in their buys was reflected in shares of insurer Bao Viet Holdings which hit their ceiling price at mid-session and remained strong to the end," said Le Cong, an analyst with a Ha Noi-based financial services corporation.

Foreign buys accounted for over 92 per cent of total trading volume in BVH shares, which closed up 4.72 per cent to VND66,500 per share.

"The rally in BVH fueled rallies in other blue chips," Cong said, noting significant gains by Masan Group (MSN) and PetroVietnam Finance (PVF).

The volume of trades on the southern market reached 67.9 million shares, worth a total of VND1.7 trillion (US$81 million). Saigon Securities Inc (SSI) was the most-active share, with a volume of 5.4 million.

Vu Dinh Do, head of investment for VNDirect Securities Co, said that market movements were being governed by major investors whose influence could spread across the market.

Do said that after the bad news of November's high inflation, Vinashin's debt crisis and an interest race among banks had been absorbed, investors had cooled down and were returning to the stock markets. He believed the markets were in an uptrend, albeit with some necessary corrections.

On the Ha Noi Stock Exchange yesterday, the HNX-Index continued falling, shedding 1.76 per cent to close yesterday at 115 points.

Trades were worth VND961.4 billion ($45.8 million) on a volume of 53 million shares, with PetroVietnam Securities Co (PSI) posted the heaviest volume of 7.7 million shares. Foreign investors were net sellers on this market by a tiny net of just 20,600 shares, worth a net of only VND473 million ($22,523).

Cong said that December inflation rates of the two major cities of HCM City and Ha Noi, released this morning, would help soothe market sentiment, with rates expected at less than 10 per cent.

Source: vnagency.com.vn