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Shares gain on liquidity growth

Update: December, 09/2013 - 08:52
Investors watch trading at Sacombank Securities in HCM City. Shares managed to creep up last week on both national stock exchanges. — VNA/VNS Photo Hoang Hai

HA NOI (VNS)— Shares managed to creep up last week on both national stock exchanges.

The VN-Index rose by 0.46 per cent to 51.12 points, while the HNX-Index in Ha Noi advanced 1.38 per cent to 66.09 points.

On the southern bourse, trading volume averaged 99.5 million shares with an average value of VND1.343 trillion (US$63.85 million).

The bourse witnessed the highest liquidity on Tuesday, with trading value touching VND1.766 trillion ($84.09 million) on the exchange of 125.5 million shares, but liquidity eased towards the end of the week.

The VN-Index entered the resistance band of 510-513 points this week and fluctuated around 510 points. The benchmark index advanced on Monday and Tuesday but fell mid-week before making a slight recovery on Friday.

On the Ha Noi Stock Exchange, the HNX-Index decreased on Monday and Thursday, but still managed to finish up 1.39 per cent week-on-week at 66.09 points.

With an average of 42.47 million shares changing hands, the average trading value reached VND328.63 points ($15.64 million).

A new set of benchmark indices was launched on the capital city's bourse at the beginning of last week, including the HNXFF-Index comprised of stocks with a minimum free-float rate of 5 per cent.

The HNXFF-Index will co-exist with the HNX-Index and then replace it in a year.

The new indices also include the HNX Large Cap, the HNX Mid/Small Cap and indices for financial, construction and industrial sectors.

Pressure from profit-takings hit several blue chips and speculative stocks last week, especially in the transportation and warehouse sectors as well as stocks which witnessed rapid increases recently such as Mirae JSC (KMR), Mien Dong Joint Stock Company (MDG) and Idico (PXL).

Speculative cash continued to flow into active stocks in securities, construction, real estate and mining, which helped ease investor fears and stimulated the market rally.

However, investors became more cautious on the last trading day of the week as liquidity declined, according to vietstock.vn.

Foreign investors concluded the week as net buyers with VND30 billion ($1.4 million).

According to Bao Viet Securities, the market was waiting for information about the restructuring of two exchange traded funds and the possibility of increasing room for foreign investors in some sectors.

Analysts also said that CPI would also affect the stock market this month, but not too much thanks to stable supplies, the price stabilisation programme and budget tightening, and the CPI target for the year of 7 per cent would be achieved.

Investors also expected business results in the last quarter would draw more speculative investment in large caps, food and confectionary, mining and transportation at this time of year.

Stocks in the banking and securities sectors might also attract investors. However, real estate shares would not be so active following a difficult year for the property market, experts said. — VNS


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