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Shares up in cautious trading

Update: August, 09/2012 - 09:24

 

Staff of the Ha Noi Stock Exchange input transactions. — VNS Photo Viet Thanh
HA NOI — Shares added value yesterday, but trading remained sluggish.

On the HCM City Stock Exchange, the VN-Index inched up 0.25 per cent to 423.57 points, with 131 advancers, 78 decliners and 82 codes closing unchanged.

The losses of some blue chips tracked by the VN30 prevented indices from gaining more. Insurer Bao Viet Holdings (BVH), software developer FPT (FPT), construction firm Dic Corp (DIG) and Vinamilk (VNM) lost between 0.2-1.2 per cent.

The VN30 also added 0.33 per cent to close at 503.74 points.

Investors remained cautious, trading only 23.8 million shares worth VND349.5 billion (US$16.6 million), dropping 36.3 per cent compared to Tuesday's level.

On the Ha Noi Stock Exchange, the HNX-Index closed up 1.3 per cent at 70.48 points.

Value decreased slightly to VND529.5 billion ($25.2 million) on a volume of 39.6 million shares.

Major shares in Ha Noi helped the HNX30 rise over 2 per cent, reaching 135.10 points.

Habubank (HBB) was the most active stock, with around 3.4 million shares changing hands. HBB hit its ceiling price of VND4,800 per share.

Earlier on Tuesday, the central bank issued its decision to finalise the merger between Habubank and Sai Gon – Ha Noi Bank (SHB). Accordingly, Habubank will be merged with SHB and HBB shares will no longer be traded from August 28.

Under the merger proposal that the two banks had previously announced, SHB will have total assets of more than VND100 trillion ($4.7 billion) and a charter capital of VND9 trillion ($428.5 million).

The stock swap ratio between the banks has yet to be released, but rumours arose that 1 HHB share would be exchanged for 0.75 new SHB share, said Kim Eng Securities Co analysts.

"Updated news around the merger had a positive effect on the market during last trading minutes," said Bao Viet Securities Co analyst Nguyen Xuan Binh.

In addition, the State Securities Commission was said to shorten market's settlement period to T+3 from September 4.

"However, these are not sustainable sources of support for the market," Binh said. "Luckily, stock indices can extand their flat trendline for several sessions before losing ground."

Selling pressure at high prices might lower indices as they reach resistance levels, he added. — VNS

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