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Shares rise on hopes for real estate market

Update: December, 17/2012 - 10:32

 

Investors trace market fluctuations at the offices of VNDirect Securities Co. — VNS Photo Viet Thanh
HA NOI (VNS)— Strengthened investor confidence in market resurgence helped stocks extend their gains throughout the week on both national exchanges, with trading improving significantly compared to the previous week.

Early last week, the market was buoyed by news of a possible "rescue" package for the real estate market, which lifted investors' outlooks and drew money back to the stock market, stock analysts asserted on the financial website vietstock.vn.

On the HCM City Stock Exchange, the VN-Index gained 2.19 per cent overall to close Friday's session at 392.21 points, while the VN30, tracking the top 30 shares on the bourses, was up 2.43 per cent to 460.74 points.

Meanwhile the HNX-Index on the Ha Noi Stock Exchange leapt by 5.38 per cent over the week, ending it at 54.44 points.

Activity jumped on both exchanges, with the volume of trades on the HCM City bourse rising 51 per cent over the previous week, averaging almost 44 million shares, worth VND538.7 billion (US$25.8 million). On the Ha Noi exchange, trading volume also soared 98 per cent, averaging 51.5 million shares, worth over VND289 billion ($13.8 million).

This was mainly thanks to robust increases in trading of Sai Gon-Ha Noi Bank (SHB) and property developer Sacomreal (SCR).

More than 48.7 million SHB shares were traded through order matching in five sessions last week, while up to 31.5 million SCR shares changed hands during the same period.

However, the long winning streak also tempted investors into selling to realise cash profits, but strong money flows in both blue chips and speculative stocks, plus support from foreign buyings helped the market maintain its uptrend.

Foreign investors concluded last week as net buyers in the HCM City market, picking up shares worth a combined VND162.4 billion ($7.8 million). Their buys focused on many large-cap shares such as food processor Masan Group (MSN) with a total buy value of VND24.2 billion ($1.2 million); insurer Bao Viet Holdings (BVH) VND13.6 billion ($650,700); and Military Bank (MBB) VND8.3 billion ($397,100).

However, foreign investors were net sellers in the Ha Noi market, unloading shares worth a total of VND25.5 billion ($1.2 million). This included 10.2 million SHB shares, worth VND52.2 billion.

According to market insiders, December is the time when investment funds book net asset values (NAVs) and blue chip trading tends to strengthen towards the end of the month, which means the market should look forward to more positive transactions.

"In the first 10 days of December, two ETFs (exchange-traded funds), whose portfolios concentrate on the Vietnamese stocks, received nearly $8 million from foreign investors to invest in the stock market. This is a good sign which will cement investor confidence in a prolonged uptrend," said Le Thi Bich Hang, analyst of FPT Securities Co.

Hang also noted that the number of speculative investments in small stocks tended to rise.

"Shares with prices of lower than VND10,000 are increasingly attracting the attention of investors. In Friday's session, up to 58 shares priced below VND10,000 hit their ceiling prices on the two bourses," Hang said, adding many of these stocks made gains of up to 60 per cent.

"In future, cash flow will likely rotate among different groups of stocks. Therefore, investors should pay higher attention to market developments to conceive a better strategy," Hang said. — VNS

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