Wednesday, June 20 2018

VietNamNews

Foreign holdings hopes lift shares

Update: June, 07/2013 - 10:20

HA NOI (VNS)— Money continued to flow into the two national exchanges yesterday afternoon, strongly supported by investor expectation that the Government will raise foreign holdings in domestic companies. Both stock indices closed the session in the green.

The State Securities Commission next month would propose to the Government to increase the ceiling ownership for foreign investors in listed companies, the commission's chairman Vu Bang told Bloomberg in an interview.

Currently, the foreign room in Vietnamese listed companies is capped at 49 per cent (excluding finance, insurance and banking sectors in which foreign holdings are limited at just 30 per cent).

On the HCM City Stock Exchange, the VN-Index closed up 1.22 per cent on 520.90 points, while the VN30 tracking the top 30 shares by market capitalisation and liquidity was also up nearly 1 per cent at 582.92 points.

Market volume and value increased 30 per cent from the previous session, totalling over 72.2 million shares, worth VND1.22 trillion (about US$58 million).

Tan Tao Investment Industry Corp (ITA) continued to lead trades on the southern market with nearly 5.4 million shares changing hands at a value of VND7,800 a share, up 4 per cent in value from a day earlier.

Vietinbank (CTG) became the second most active code on trades of 4.86 million shares following the news that the bank on Tuesday increased the room for foreign holdings from 12.79 per cent to 30 per cent. CTG settled at the ceiling price of VND19,700 a share ($0.94).

On the Ha Noi Stock Exchange, the HNX-Index also edged 1.22 per cent up at 65.33 points on a market value of VND349.2 billion ($16.6 million).

Sai Gon-Ha Noi Bank (SHB) was again the most active code on trades of over 6.4 million shares, growing 1.4 per cent to VND7,400 a share.

Stock analysts are confident with the market uptrend in the medium term, but in the short term they are still cautious about a likelihood of several corrections, especially when the indices approach their technical barriers.

According to FPT Securities Co's analysts, investors are advised to pay attention to trading in the foreign sector. If they continued unloading shares for a period of time, the current rally could be reversed.

Foreign investors continued to be net sellers on both exchanges, its four net selling sessions in a row this week. They unloaded shares worth a combined VND71.22 billion ($3.4 million) on both exchanges. — VNS


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