Shares rebound from slump

HA NOI — Shares on both the HCM City and Ha Noi stock exchanges bounced back yesterday from two declining sessions, with bank and securities shares again leading the market rise.

On the HCM City Stock Exchange, the VN-Index gained over 1 per cent to close the session at 485.29. Market volume fell slightly, however, to just over 74.1 million shares, worth a combined VND1.8 trillion (US$85.7 million).

Advancers outnumbered decliners by 215-32, with Vietcombank (VCB), Vietin-bank (CTG) and Saigon Securities Inc (SSI) reaching their ceiling prices, and Agribank (AGR), Sacombank (STB) and Eximbank (EIB) all seeing healthy gains.

Bank shares continued to see a boom following this week's decision by the Government to delay enforcement of stricter minimum capital requirements on commercial banks.

Of the 10 leading shares by capitalisation, only insurer Bao Viet Holdings (BVH) and property developer Vincom Co (VIC) lost value on the HCM City market yesterday. Tan Tao Investment Industry Corp (ITA) was the most-active share with over 4.8 million traded.

On the Ha Noi Stock Exchange, the HNX-Index jumped 3.7 per cent to close at 119.70. The volume of trades reached 57.4 million shares, worth a combined VND1.11 trillion ($55 million), while gainers outnumbered losers by 259-55.

Bank and securities shares on the Ha Noi market rose to the tops of their trading bands across the board, including Sai Gon-Ha Noi Bank (SHB), Au Viet Securities Co (AVS), Bao Viet Securities Co (BVS), Sai Gon-Ha Noi Securities (SHS), VNDirect Securities (VND) and Kim Long Securities (KLS).

KLS became the most-active share nationwide, with over 7 million shares changing hands.

Independent analyst To Tran Hoa said the prices of bank and securities stocks were currently considered attractive, but banks' offers to pay cash dividends were also making these shares more appealing.

Seven out of eight listed banks expected to pay cash dividends of around 20 per cent this year, according to financial news website StoxPlus, with only Nam Viet Bank (NVB) not getting in on the party.

Foreign investors again concluded yesterday as net buyers on both exchanges, responsible for a combined pick-up of VND213 billion ($10.1 million) worth of shares.

Saigon Securities Inc analysts predicted a sustained market rise over the medium term, noting that investors seemed more optimistic and interested in catching shares still at bargain-basement prices after the recent market retreat.

Source: vnagency.com.vn