IPO news too late to impact trades

(05-12-2007)

HA NOI — Information released yesterday about Vietcombank’s initial public offering may have hit too late in the day to greatly affect morning trading on the HCM City stock exchange, with the market only managing to increase a nominal 0.95 points, or 0.09 per cent, to close at 988.91.

However, value was over VND1 trillion (US$62.3 million), up 24 per cent over Monday’s trading, on a volume of 9.47 million shares, a 14 per cent increase.

"The strong increase in trading volume and value yesterday is a signal that the upward trend of the stock market is about to be consolidated," said Vo Ngoc Huy, an analyst with the Sacombank Securities Co. "The VN-Index increase, though marginal, is to some extent more positive than an unstable surge."

On December 11 and 18, Vietcombank will hold conferences in Ha Noi and HCM City to introduce the bank to potential investors, with the news trailing out that the bank’s long-awaited IPO would take place on December 26, with shares to be offered at an initial price of VND100,000.

An official announcement was expected later in the week, with positive impacts on the stock market expected to register in trading today.

A number of blue chip shares, meanwhile, performed well in yesterday’s trading, with General Forwarding and Agency Corporation (GMD) rising 2.16 per cent to close at VND142,000 and Refrigeration Electrical Engineering Corporation (REE) rising 2.07 per cent to close at VND148,000. Phu My Fertilisers (DPM) rose for the third consecutive session, closing up modestly at VND79,500.

Idico Urban and Housing Development (UIC) was the day’s biggest loser, falling 3.21 per cent to close at VND151,000 with only 84,450 shares traded.

At the Ha Noi Securities Trading Centre, the HASTC-Index closed at 349.50, up 1.26 per cent. Trading value was VND529.7 billion ($33 million) on a volume of 5.6 million shares, the highest level in the past three weeks.

Recently listed Song Da 9.09 (S99) was the biggest gainer, rising 6 per cent to close at VND388,400 per share on a volume of 28,200 shares traded. — VNS