phuocpham
29-08-2009, 10:02 PM
The Ho Chi Minh City stock market Friday climbed above 530 points, marking the sixth straight weekly gain as global gains boosted local investor confidence, an analyst said.
The VN-Index rallied 9.49 points, or 1.8 percent, to close at 536.53, the highest since September 5 as advances outnumbered declines by 139 to 17 while 14 stocks were unchanged.
All sectors except oil and gas gained, with healthcare being the day’s top performer.
Foreign investors were net buyers, purchasing stocks worth VND223 billion (US$12.5 million) while shedding VND151 billion.
In Hanoi, the HNX-Index closed 2.14 percent higher at 167.64.
Fiachra Mac Cana, Managing Director of Ho Chi Minh City Securities Corporation, said in a daily market comment that the markets broke their lethargy of recent days and the bulls reasserted themselves to push both indices past recent highs.
He said real estate, steel, fisheries, rubber and health care stocks all did very well and the put-through market was quite active Friday, which was another sign of life returning to the markets.
“The triggers were twofold; more signs that a second stimulus package (read rollover of the existing subsidies) was under serious discussion by the authorities and reasonable overnight gains on international markets,” he said.
“Those stocks most likely to benefit from an extension of the subsidized loan program have been gaining ground recently. And indeed the recent benign CPI release is also being savored by some as a sign that inflation is still subdued. In addition, the rather generous liquidity being added to the money markets by the central bank in an attempt to keep rates under control is also being viewed as a short term positive for equities,” said Mac Cana.
“However the euphoria of the previous stage of the rally is missing this time round and what we are seeing is a rather mature movement with steady rather than spectacular gains. Ahead of the one day holiday next week investors may not want to take on board too many positions so the early part of next week may see lower volumes although we might well see a continuation of the upside,” he added.
The VN-Index rallied 9.49 points, or 1.8 percent, to close at 536.53, the highest since September 5 as advances outnumbered declines by 139 to 17 while 14 stocks were unchanged.
All sectors except oil and gas gained, with healthcare being the day’s top performer.
Foreign investors were net buyers, purchasing stocks worth VND223 billion (US$12.5 million) while shedding VND151 billion.
In Hanoi, the HNX-Index closed 2.14 percent higher at 167.64.
Fiachra Mac Cana, Managing Director of Ho Chi Minh City Securities Corporation, said in a daily market comment that the markets broke their lethargy of recent days and the bulls reasserted themselves to push both indices past recent highs.
He said real estate, steel, fisheries, rubber and health care stocks all did very well and the put-through market was quite active Friday, which was another sign of life returning to the markets.
“The triggers were twofold; more signs that a second stimulus package (read rollover of the existing subsidies) was under serious discussion by the authorities and reasonable overnight gains on international markets,” he said.
“Those stocks most likely to benefit from an extension of the subsidized loan program have been gaining ground recently. And indeed the recent benign CPI release is also being savored by some as a sign that inflation is still subdued. In addition, the rather generous liquidity being added to the money markets by the central bank in an attempt to keep rates under control is also being viewed as a short term positive for equities,” said Mac Cana.
“However the euphoria of the previous stage of the rally is missing this time round and what we are seeing is a rather mature movement with steady rather than spectacular gains. Ahead of the one day holiday next week investors may not want to take on board too many positions so the early part of next week may see lower volumes although we might well see a continuation of the upside,” he added.