yawns at Vietcombank IPO news
|Investors watch trading
boards at Saigon Securities Inc. Individual investors took a
wait-and-see attitude last week, leaving the market in the doldrums. —
VNS Photo Truong Vi
HA NOI — The stock
market reacted impassively to widespread publicity last week about Vietcombank’s
upcoming initial public offering, with the VN-Index gaining only 2.28 points on
Trading was somewhat more
upbeat on Monday of last week, said analysts, but the mood didn’t last long.
Other factors continued to weigh on the market, they said.
Before information of the
Vietcombank IPO was released, many had predicted that bank shares would be
affected. However, Sacombank (STB) shares only rose on Monday when information
of Vietcombank’s initial share price was released preliminarily by the HCM
City Stock Exchange.
STB reached VND70,000 on
Monday, but closed out the week at VND68,500, equal to the previous week’s
Vo Ngoc Huy, deputy
director of the brokerage department of the Sacombank Securities Co, said,
"Investors now want to hold onto their shares rather than selling as they
want to enjoy the benefits that many companies are expected to offer at the end
of the year, such as dividends, bonus shares and options to buy additional
shares at preferential prices."
The IPO, therefore, could
not set the market trend, and has become only a factor in making the investor
mood more upbeat, Huy said.
Huy Nam, a freelance
expert in HCM City, said, "Vietcombank’s IPO is a move affirming the
State’s determination to restructure State-owned enterprises, it doesn’t
relate directly to individual investor actions."
Sure enough, in most
trading sessions, investors seemed to take a wait-and-see attitutde, putting off
any major buy or sell decisions, with both trading volume and value declining as
Average volume per day
last week was 7.97 million shares, down from the previous week’s 8.3 million,
with an average value of VND798.3 billion (US$50 million) per day, compared to
the previous week’s VND859.2 billion ($53.7 million).
"It is difficult to
predict the VN-Index for the week ahead because there are no clear signs,"
Nam said. "The prices of many shares are now reasonable to buy in, but the
problem is whether investors want to buy. It will be hard for the market overall
to repeat its skyrocketing performance at the end of last year. This year, a
1,000-point level is as good as can be expected."
In last week’s trading,
Phuong Nam Culture Joint Stock Co (PNC) was the leading gainer, advancing 17.35
per cent for the week to close on Friday at VND39,900. Long An Food Processing
and Export (LAF) closed at VND54,500, 9 per cent higher than the previous
Binh Trieu Construction
and Engineering (BTC) was the week’s top loser, declining 16.37 per cent to
close at VND71,500.
At the Ha Noi Securities
Trading Centre, the HaSTC-Index closed the week at 344.08 points, a gain of 2.98
points. — VNS