Shares rebound on bottom fishing - Economy

Updated

December, 29 2011 09:26:00

Shares rebound on bottom fishing

HA NOI — Shares on both national stock exchanges rebounded yesterday as many investors began to hunt bargains.

Most analysts agreed a rally was predictable after several consecutive sessions of decline but what investors cared about now was how long the uptrend could last.

"The supporting factor now is probably only the technical signals which indicate that the two indices fell too hard after several declines," analysts with Vietcombank Securities Co wrote in a market report.

"However, without the support from the improvements in the economic situation, any uptrends are unlikely to be sustained," they said.

The HCMC Stock Exchange saw more than 60 per cent of codes posting gains, with the benchmark VN-Index rising 0.82 per cent to finish yesterday's session at 350.66 points.

Most of the blue chips gained in value, with Vietinbank (CTG), Vietcombank (VCB), Saigon Securities Inc (SSI) and property developer Hoang Anh Gia Lai (HAG) hitting their daily limit of 5 per cent.

HAG chairman Doan Nguyen Duc registered to buy 5 million HAG shares from December 30 to February 29 – a move considered to take advantage of HAG's cheap share price to increase his holdings in the company.

Of the 10 leading shares by capitalisation, only Sacombank (STB) bottomed out and insurer Bao Viet Holdings (BVH) declined 2.1 per cent.

Financial Ocean Group (OGC) rose to be the most active code yesterday with 1.84 million shares changing hands, gaining 4.1 per cent to close at VND7,600.

Overall the market volume increased slightly to over 57.7 million shares, worth more than VND838 billion (US$40 million).

On the Ha Noi Stock Exchange yesterday, the Bank for Investment and Development of Viet Nam (BIDV) auctioned nearly 85 million shares in its initial public offering (IPO) with the starting price of VND18,500 ($0.88) per share.

Up to 16,238 investors had registered to buy over 140.8 million shares, surpassing the registered number by 66.2 per cent. The IPO results will be announced in the afternoon today.

The HNX-Index yesterday also surged 2.56 per cent to close at 58.15 points, with gainers outnumbering losers by 171-65.

The value of trades decreased 20 per cent, however, totalling VND249 billion ($11.9 million) on a volume of 30.5 million shares.

VNDirect Securities Co (VND) continued to be the most heavily traded stock in Ha Noi with 2.71 million shares traded, closing unchanged at VND6,900.

Foreign investors remained as net sellers in HCM City, unloading VND48.2 billion ($2.3 million) worth of shares, but they continued to pick up shares in Ha Noi, responsible for a net buy of over VND2 billion ($100,000) worth of shares. — VNS

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