Markets explode in trading frenzy

HA NOI — Shares extended their gains to three successive days when the stock markets opened for a new week yesterday morning.

Indices advanced strongly on soaring volumes in both HCM City and Ha Noi, with combined trades totalling VND4.14 trillion (US$197 million) on a total volume of almost 183 million shares – the highest figures since the beginning of the year. Profit-taking accelarated as indices reached their resistance levels on both markets.

On the HCM City Stock Exchange, the VN-Index ended the session up 0.26 per cent to 465.56 points. Volume soared 33.6 per cent to over 95 million shares – the highest level in the past seven months – while the value of trades increased by a whopping 54.5 per cent to VND2.38 trillion ($113.3 million).

Negotiation transactions made up 19 per cent of the total market value, of which 78 per cent were believed to be transactions involving the two Dragon Capital funds, the Viet Nam Dragon Fund and Dragon Capital Viet Nam.

Seventy of the 168 codes to post gains on the day hit their ceiling prices, with most being real estate developers or mine or rubber companies, such as Dat Xanh Real Estate Service and Construction (DXG), Cotec Investment and Land-House Development (CLG), Binh Dinh Minerals (BMC), Tay Bac Minerals Investment (KTB), Da Nang Rubber (DRC) and Southern Rubber Industry (CSM).

An astonishing 24 codes saw volumes in excess of a million shares, with Saigon Securities Inc (SSI) ending the day as the most-active share with over 7 million traded.

A decline by some blue chips weighed on the market advance, however. Masan Group (MSN) closed down 3.9 per cent, PetroVietnam Finance (PVF) 1.7 per cent, Sacombank (STB) 1.3 per cent, Vietinbank (CTG) 1 per cent, and Vinamilk (VNM) 0.6 per cent.

On the Ha Noi Stock Exchange, the HNX-Index advanced by 0.35 per cent to close at 117.07.

Over 87.7 million shares were exchanged, worth VND1.76 trillion ($83.8 million) – an all-time high in volume since the establishment of the northern bourse.

Advancers outnumbered decliners by 194-115, and 54 codes hit their ceiling prices. Kim Long Securities Co (KLS), with a volume of 10.6 million shares, was the most heavily-traded share nationwide.

Trinh Hoai Giang from HCM City Securities Co said that depressed share prices had finally stirred up an appetite for cheap shares in a large number of investors, while Luong Bien Nhan Quyen, head of the individual customer consulting division of Mekong Securities Co, saw similarities between the current stock market situation and the recovery from the 2008 market crash.

The VN-Index fell to 366 points in June 2008 in a context of high inflation and a soaring exchange rate and interest rates, similar to the current economic situation, Quyen said. However, the market rebounded strongly in early 2009 as investors rushed to catch cheap shares, triggering a market recovery.

"After several rising sessions, there will be some corrections, but the current market has seen only modest corrections and one-day trading," said Quyen, predicting a continued rally.

In a survey of market analysts taken over the weekend, 40 per cent agreed with the forecast that the market would continue to rise strongly this week.

Source: vnagency.com.vn