Foreign investors boost blue chips
HA NOI — Increased foreign investor interest in blue chips yesterday helped rescue the HCM City Stock Exchange from another decline, with the VN-Index closing flat at 491.11 points.
Gainers outnumbered decliners on the HCM City exchange by 100-96, with 58 codes remaining unchanged. Vinh Son-Song Hinh Hydropower Co (VSH), the most-active share on a volume of 1.6 million, slid 3.9 per cent to close at VND12,300 ($0.65).
Overall market volume fell to just 37.1 million shares worth a combined nearly VND1.1 trillion (US$57.9 million) – a decline of 20 per cent in both volume and value.
The VN-Index immediately sank below 490 upon the opening of trading yesterday, but heavy buys by foreign investors, particularly in major shares, helped lift the market in the latter half of the session.
Foreign investors bought in 64 codes on a volume of nearly 3.2 million shares, accounting for 9.14 per cent of market volume. They purchased over 587,000 shares of software giant FPT, nearly 410,000 of Tan Tao Investment Industry Co (ITA), over 294,000 of Saigon Securities Inc (SSI), over 290,000 of Phu My Fertilisers, and 244,500 of PetroVietnam Drilling (PVD).
Overall, however, foreign investors bought a net of just 850,000 shares, worth about VND8 billion ($421,000).
HCM City-based analyst Tran Van Hoa said bottom-catching forces increased when the VN-Index bored through the supporting 490-point level, but it wasn't strong enough to lift the market.
"Economic fundamentals are positive and the financial world shows signs of recovery, but a lack of new capital inflows is restraining the market rebound," said Hoa.
On the Ha Noi Stock Exchange, the HNX-Index bounced from a three-day losing streak to end the session yesterday at nearly 153 points, a gain of 0.4 per cent over Wednesday's close.
Volume and value on the nothern bourse surpassed those on the HCM City exchange, with trades totalling VND1.28 trillion ($67.4 million) on a volume of over 46.3 million shares, an increase of 28 per cent in value and 34 per cent in volume over the previous day. Advancers were double decliners on brisk trading, as many investors returned to buying on the hope of netting cheap stocks.
PetroVietnam Construction (PVX) became the most-active share nationwide with a whopping 8.3 million shares traded. PVX closed down 2.26 per cent to VND26,000 ($1.37).
Foreign investors were net sellers on the Ha Noi bourse, selling VND400 million ($21,500) worth of shares.
The Ha Noi bourse yesterday also welcomed the listing of Kien Giang Brick and Tile Co (KBT), which closed unchanged at VND22,000 ($1.16) on a volume of 69,000 shares.
Analysts at Sacombank Securities Co said investor sentiment was not yet stable and the market would likely continue treading water as the current investment climate could not absord the rising suppy of newly-listed shares. — VNS