Broker ownership rules stir market - Economy

Updated

July, 27 2012 10:24:48

Broker ownership rules stir market

Investors monitor trading at the offices of SME Securities Co. Stocks gained value on both national stock exchanges yesterday. — VNA/VNS Photo Pham Hau

HA NOI — Shares rallied yesterday on both of the nation's stock exchanges, although trading remained sluggish.

On the Ha Noi Stock Exchange, the HNX-Index added 0.6 per cent over the previous day's close to end yesterday's session at 70.09 points. The value of trades was essentially unchanged from Wednesday, standing at VND360.6 billion (US$17.1 million) on a volume of some 39.6 million shares. Of nearly 400 listed stocks, over 160 codes advanced while 70 posted declines.

The HNX30 Index, tracking the northern bourse's leading shares by capitalisation and liquidity, rose by over 1 per cent to reach 133.49 points.

VNDirect Securities Co (VND) was the most-active share with 4 million shares changing hands. It increased 3.8 per cent yesterday.

On the HCM City Stock Exchange, the VN-Index edged up by 0.46 per cent to 414.80 points, as advancers outnumbered decliners by 154-75.

The value of trades amounted to just over half of the previous day's level, reaching only VND415.7 billion ($19.7 million). Volume also fell 29.2 per cent to just 30.8 million shares.

Nineteen of the 30 shares tracked by the VN30 Index posted gains, while three others tumbled, allowing the index to climb to 490.78 points, an increase of 0.5 per cent.

Investment group Tan Tao (ITA) was the most-active share in HCM City with around three million exchanged. ITA gained 1.5 per cent to close at VND6,900 per share.

Shares of securities companies witnessed more intensive increases yesterday, with brokerages such as Bao Viet Securities (BVS), Vietnam Investment Securities (IVS), Saigon Securities Inc (SSI), Agribank Securities (AGR) and Sai Gon – Ha Noi (SHS) all closing up by 1.6-4.8 per cent.

"Besides the profits these companies have made, the expected regulation to allow foreign investors to wholly own domestic brokerages has helped boost these shares," Kim Eng Securities Co analysts noted.

Despite a recent uptrend, investors remained cautious after the long market decline, they said, noting that a new downturn driven by weakening global markets could ultimately erase gains made earlier in the year. — VNS

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