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View Full Version : Heavy early trading lifts VN-Index 2.5%



phuocpham
31-12-2009, 04:09 PM
Heavy purchase since early session turned around the VN-Index by 2.25 percent on Wednesday, to 495.36 points.
Daily turnover on the HCM City Stock Exchange remained brisk at VND2.49 trillion (US$134.6 million), with 55.53 million shares changing hands.
Meanwhile, the Ha Noi bourse jumped 2.97 percent, ending the session at 164.87 points. Total trading value rose to VND978.67 billion ($52.9 million) on a volume of 29.06 million shares.
"The sudden change in trading is due to year-end sentiment," said Nguyen Hoang Hai, an analyst at an HCM City-based securities company. "The New Year is only a day away and the sell-off has not brought expected profits due to the temporary pause in credit lending."
Hai added that resumed lending next year would reinvigorate lending activity.
Nguyen Anh Tuan, General Director of SJC Securities, was quoted as saying on local online newspaper vnexpress.net that investors were now paying most attention to credit - how much commercial banks would pour into securities trading.
"If there is a significant influx of money into securities, traders will not be deterred by the 0.1 per cent tax rate on transactions," Tuan said.
John Harackiewicz, a securities analyst at Sacombank Securities, said in the report yesterday that the firm’s year-end estimate was about 480 to 500 points.
"We will have to wait until January 4 before we know for sure what is happening," Harackiewicz said.
The analyst predicted that small-cap and mid-cap trading would lead the market rally. He recommended that investors continue to spend and that positive gains would be made in the first quarter of 2010.
Foreigners continued to buck the market trend yesterday, selling a net 940,000 shares in HCM City. However, they turned positive on the northern market and picked up 249,300 shares.
Steel water-tank maker lists
HCM CITY – Steel water-tank, sink and pipe maker Son Ha International Joint Stock Company (SHI) listed yesterday on the HCM City Stock Exchange, the 222nd to do so.
The listing would help improve the liquidity of the company’s 15 million shares, chairman Le Vinh Son said.
SHI runs two factories in Ha Noi and one HCM City and has over 35 per cent of the market share for water tanks.
It also distributes Casterix, a Spanish kitchenware brand that includes cookers, ovens and faucets.
The company has a network of 500 distributors and 5,000 agents.
SHI will begin construction of a VND60 billion (US$3.2 million) factory in HCM City in early January and it is expected to begin production by October.
The company is expanding into real estate with plans for a 47ha urban project in Ha Noi and a 37ha residential project in Da Lat.
This year it expects to earn net profits of VND35 billion, taking its earnings per share (EPS) to VND2,761.
The reference price for its listing was VND25,000. The price is allowed to trade up to 20 per cent up or down on the opening day.