Shares rally as banks start to relax

HA NOI — Shares extended their gains to three successive days, with both stock indices advancing strongly as soon as the markets opened yesterday morning.

Banking and financial shares led the rally, but the high number of unsold shares depressed trading volumes and values on both exchanges.

Market support came from the State Bank of Viet Nam's proposal to the Government to extend the December 31 deadline for commercial banks to meet the new higher charter capital requirement of VND3 trillion (US$141.7 million).

According to an unofficial source, the Government agreed to give banks an additional six months to comply.

Dong Duong (Indochina) Securities Co analyst Luong Thi Anh Dao said demand was quite strong with speculative capital returning to the market, and she predicted the VN-Index would cross the 500-point threshold this week.

On the HCM City Stock Exchange, the VN-Index climbed 3.63 per cent to end the session at 490.22 points. Volume declined 14 per cent from last Friday to just over 80 million shares, while the trades plunged by over 44 per cent to almost VND1.88 trillion ($89.3 million).

Advancers outnumbered decliners 234-16, with 132 codes hitting the top of their trading band for the day.

Shares of PetroVietnam-Idico Long Son Industrial Park Investment (PXL), which debuted on the HCM City Stock Exchange last Thursday, suprised the market, becoming yesterday's most-active share on a volume of 4.46 million. PXL rose 2.9 per cent to close at VND14,100 ($0.67).

On the Ha Noi Stock Exchange, the HNX-Index soared by over 4.6 per cent to close at 121.76 points, but volume declined 12 per cent to 53.1 million shares, worth just VND1.07 trillion ($51 million).

Over 61 per cent of the 316 shares to post gains on the day climbed to their ceiling prices.

PetroVietnam Construction (PVX), with over 3.9 million shares exchanged, was the most heavily-traded stock and reached the top of its trading band, ending the day at VND23,800 ($0.78) per share.

Foreign investors concluded yesterday as net sellers in HCM City of 2.1 million shares, worth a net of over VND24 billion ($1.1 million), but they were net buyers in Ha Noi of VND2.58 billion ($122,900) worth of shares.

Source: vnagency.com.vn