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Market restructure hopes boost shares

Update: February, 01/2012 - 09:11

HA NOI — Shares continued to rise yesterday on both of the nation's stock exchanges as investors remained upbeat over comments by Minister of Finance Vuong Dinh Hue on Monday that the ministry was ready to take drastic measures to reorganise the market to ensure its sustainability.

Information released about the VN30, the new benchmark index on the HCMC Stock Exchange which will begin tracking share movements on February 6, also strenghthened investor confidence, FPT Securities Co analysts wrote in a report.


New index to roll out next Monday

The HCMC Stock Exchange announced on Monday the list of 30 stocks which will be put in the basket to calculate the exchange's new VN-30 Index, the new benchmarch index for the southern bourse which will be applied next Monday, February 6.

The exchange also published the number of outstanding shares and the free floate rate – the ratio between the number of shares freely traded on the market over the total number of outstanding shares – for the 30 stocks. The names of 10 shares on a back-up list were also posted.

On Friday, the exchange will anounce the weighted rate of each of the eligible stocks.

The VN-30 Index will track the 30 leading stocks by both market capitalisation and liquidity, representing about 80 per cent of total market capitalisation and 60 per cent of total market volume.

The stocks in the basket must have a free-float rate of over 5 per cent and no share will be weighted at more than 10 per cent of the index in order to eliminate potential distortional impacts by particularly stocks, with the VN-Index commonly dominated by the so-called "quartet" of insurer Bao Viet Holdings (BVH), food producer Masan Group (MSN), real estate developer Vincom (VIC) and dairy giant Vinamilk (VNM).

The list of eligible stocks will be reassessed every six months. — VNS

On the HCM City exchange yesterday, the VN-Index gained 0.79 per cent over the previous session to close at nearly 388 points. The value of trades also soared by 72 per cent over Monday's level to VND509 billion (US$24.2 million), while the volume of trades rose by 80 per cent to 39 million shares.

Transactions focused on mid-cap and penny stocks, pushing many to their ceiling prices. Gainers included Becamex Infrastructure Development (IJC), Binh Duong Trade and Development (TDC), Sounthern Rubber Industry (CSM) and Viet Nam Electricity Construction (VNE).

Blue chips were mixed. Real estate developer Hoang Anh Gia Lai and PetroVietnam Finance (PVF) hit the ceiling, but insurer Bao Viet Holdings (BVH), Phu My Fertilisers (DPM) and software giant FPT Corp (FPT) all posted declines between 0.6-1.1 per cent.

Overall, gainers overwhelmed losers yesterday by 149-79.

On the Ha Noi Stock Exchange, the HNX-Index climbed by 2.1 per cent to close at 60.59 points. Both volume and value doubled Monday's totals, with 38.6 million shares traded for a value of nearly VND322.3 billion ($15.3 million) Advancers on the northern bourse outnumbered decliners by 202-55.

Three codes saw activity in excess of three million shares, including Kim Long Securities (KLS), VNDirect Securities (VND) and PetroVietnam Construction (PVX). PVX was the most-active share during the session with 3.93 million traded. It soared to its ceiling price while KLS and VND each closed over 4 per cent higher.

Foreign investors concluded yesterday as net buyers on both exchanges, picking up a combined VND83.9 billion ($4 million) worth of shares. — VNS

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