Vinashin bailout spurs markets

HA NOI — Trading exploded on the nation's stock exchanges yesterday, with the volume of trades tripling on the HCM City Stock Exchange to 88.9 million shares, worth nearly VND2.1 trillion (US$100 million).

The brisker activity helped lift the VN-Index to a close of 479.33 points, a gain of 1.33 per cent over Monday's session.

The Government's decision to bail out struggling shipbuilder Vinashin by extending it a loan at a zero-per-cent interest rate set off yesterday's explosion in trades, explained Nguyen Quoc Binh, head of brokerage for a HCM City-based securities company.

"This news helped motivate investors since more bad news about Vinashin's debt seemed like the last thing they wanted to hear before the year ends," Binh said.

Tan Tao Industrial Park (ITA) saw the largest gains among 199 stocks advancing yesterday, following ITA's announcement of a whopping 50 per-cent dividend and plans to issue bonus shares.

Tan Binh Import-Export Co (TIX), Dong A Plastics Co (DAG) and Transport Engineering Construction and Business Investment Co No 584 (NTB) also posted heady gains.

On the Ha Noi Stock Exchange, the HNX-Index rose for a second day, closing up by 3.03 per cent to 114.81 points. Volume improved to nearly 45 million shares, worth a total of VND903.4 billion.

Financial services provider Stoxplus Corp noted that financial stocks achieved the highest gains yesterday, advancing by an average of 3.1 per cent, with the share of many securities companies, in particular, hitting their ceiling prices.

Kim Long Securities Co (KLS) became the most-active share nationwide, with over 5 million traded.

Binh suggested that the ‘hot' money might have begun returning to the markets yesterday as speculators sought opportunities in the final days before the new year.

"The money is flowing strongly to groups of stocks unsupported by any significant news," he said. "This could warm up the markets in the last days and the VN-Index could close out the year at a higher level than had been expected."

Foreign investors reverted to a profit-seeking stance yesterday, selling off over 800,000 shares in HCM City. They remained net buyers on the Ha Noi market, but by a net of only 179,800 shares.

Source: vnagency.com.vn