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Surplus-housing buy boosts shares

Update: March, 23/2012 - 09:04

HA NOI — The VN-Index closed essentially unchanged yesterday at 445.67 points, after shares on the HCM City Exchange recovered at mid-day from losses earlier in the session.

The value of trades slid 17.4 per cent from Wednesday's level to about VND1.16 trillion (US$55.2 million), while volume declined by 17.1 per cent to 81.6 million shares.

Eleven of the 30 stocks tracked by the VN30 Index closed up, including PetroVietnam Finance (PVF), financial conglomerate Ocean Group (OCG) and real estate stocks HCM City Infrastructure Investment (CII) and Khang Dien House (KDH), which hit their ceiling prices. However, the VN30 shed 0.25 per cent overall to end the day at 505.54 points.

"Investor caution continued, but real estate shares surpassed securities stocks to top the market," said Hoa Binh Securities Co analyst Vu Thai Ha.

An important support for the real estate sector was the Government's move to buy up some low-priced real estate projects. Deputy Minister of Construction Nguyen Tran Nam said his ministry was considering buying surplus housing projects at prices of VND15-17 million ($714-809) per square metre by the end of the third quarter at the latest.

"This plan will not only remove difficulties for real estate firms but also somewhat reduce bad debt levels in the banking system," commented Kim Eng Securities Co analysts.

Although market value declined on the day, it continued above average, indicating that money flows remained, Ha added. — VNS

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