phuocpham
12-10-2009, 06:22 PM
Returned investor confidence, bouyed by positive US market developments and satisfactory domestic corporate results, helped domestic stock indices rally significantly last week.
On the HCM City Stock Exchange, the VN-Index increased 32.26 points overall last week to close at 581.99, an increase of 5.87 per cent over the previous Friday’s close.
The average daily trading volume fell by 32 per cent from the previous week’s average to 50.4 million shares, while daily trading value averaged VND2.6 trillion (US$144.4 million), down 28 per cent from the previous week’s average.
On the Ha Noi Stock Exchange, the HNX-Index closed at 189.65 after gaining 12.38 points over the course of the week, an increase of 6.98 per cent.
Trading volume averaged 34.4 million shares per day, off 18 per cent from the previous week’s average, while the average daily turnover declined 18 per cent from the previous week’s average to VND1.4 trillion ($77.8 million).
"Both stock indices beat investor and expert forecasts to increase strongly last week," said Tran Quang Vinh from the FPT Securities Co brokerage department. "Solid gains on the US stock market were the most important motivation for domestic increases."
Positive domestic business news and improved foreign investor moves on local exchanges also helped stabilise investor psychology, he said.
In HCM City last week, foreign investors were responsible for a net sale of about 673,000 shares, but were net buyers by value of VND48.2 billion ($2.8 million). In Ha Noi, foreigners were net buyers of 2.7 million shares, worth a net of VND79.8 billion ($4.4 million).
Vinh said concerns about a short-term downward trend had blown over but challenges remained ahead for market growth.
He predicted that the VN-Index would range between 550 and 600 this week and, if company earnings were motivative enough to help the Index reach 590 early in the week, it was absolutely possible that it would soon reach 620.
The high probability of an additional economic stimulus package supported market growth, he said. "But we should note that even if the package is adopted, it can’t have immediate impacts on the economy."
ACB Securities Co financial expert Nguyen Minh Phuong said the Government was expected to take a final decision on the stimulus package this month but there was a high possibility that it would be implemented early next year to assure control over economic conditions, particularly inflation.
Phuong said that a hindrance to market growth for the rest of the year was that supplies of shares were rapidly increasing, with many new listings and additional issues. Meanwhile, flows of capital into the market were seeing signs of slowing as some banks and securities firms once again began to restrict lending against securities.
Sacombank Securities Co investment consultant Nguyen Duc Minh said that banking and financial shares were lagging behind general market growth and therefore promised strong increases in the coming weeks. The price-to-earnings (P/E) ratios of the leading banking shares were expected to be the lowest of all sectors this year.
Nguyen Van Thanh, director of the Vietinbank Securities Co analysis department, suggested investors look at banking shares, as bad debt conditions were significantly improved and credit growth continued strong. He also pointed to mining, construction materials, real estate and seafood processing as other hot areas on the market.
On the HCM City Stock Exchange, the VN-Index increased 32.26 points overall last week to close at 581.99, an increase of 5.87 per cent over the previous Friday’s close.
The average daily trading volume fell by 32 per cent from the previous week’s average to 50.4 million shares, while daily trading value averaged VND2.6 trillion (US$144.4 million), down 28 per cent from the previous week’s average.
On the Ha Noi Stock Exchange, the HNX-Index closed at 189.65 after gaining 12.38 points over the course of the week, an increase of 6.98 per cent.
Trading volume averaged 34.4 million shares per day, off 18 per cent from the previous week’s average, while the average daily turnover declined 18 per cent from the previous week’s average to VND1.4 trillion ($77.8 million).
"Both stock indices beat investor and expert forecasts to increase strongly last week," said Tran Quang Vinh from the FPT Securities Co brokerage department. "Solid gains on the US stock market were the most important motivation for domestic increases."
Positive domestic business news and improved foreign investor moves on local exchanges also helped stabilise investor psychology, he said.
In HCM City last week, foreign investors were responsible for a net sale of about 673,000 shares, but were net buyers by value of VND48.2 billion ($2.8 million). In Ha Noi, foreigners were net buyers of 2.7 million shares, worth a net of VND79.8 billion ($4.4 million).
Vinh said concerns about a short-term downward trend had blown over but challenges remained ahead for market growth.
He predicted that the VN-Index would range between 550 and 600 this week and, if company earnings were motivative enough to help the Index reach 590 early in the week, it was absolutely possible that it would soon reach 620.
The high probability of an additional economic stimulus package supported market growth, he said. "But we should note that even if the package is adopted, it can’t have immediate impacts on the economy."
ACB Securities Co financial expert Nguyen Minh Phuong said the Government was expected to take a final decision on the stimulus package this month but there was a high possibility that it would be implemented early next year to assure control over economic conditions, particularly inflation.
Phuong said that a hindrance to market growth for the rest of the year was that supplies of shares were rapidly increasing, with many new listings and additional issues. Meanwhile, flows of capital into the market were seeing signs of slowing as some banks and securities firms once again began to restrict lending against securities.
Sacombank Securities Co investment consultant Nguyen Duc Minh said that banking and financial shares were lagging behind general market growth and therefore promised strong increases in the coming weeks. The price-to-earnings (P/E) ratios of the leading banking shares were expected to be the lowest of all sectors this year.
Nguyen Van Thanh, director of the Vietinbank Securities Co analysis department, suggested investors look at banking shares, as bad debt conditions were significantly improved and credit growth continued strong. He also pointed to mining, construction materials, real estate and seafood processing as other hot areas on the market.