Stocks rebound on fund news

[kieudiemvje]

Shares on the two national stock exchanges closed the week higher for the first time in three weeks thanks to a strong rally on Tuesday, triggered by the confirmation that Viet Nam Enterprise Investment Ltd fund (VEIL) would continue operating in Viet Nam.
On the HCM City Stock Exchange, the VN-Index gained 1.35 per cent from the previous week to close Friday's session at 506.21. The value of daily trading rose over 15 per cent to reach nearly VND1.2 trillion (US$63.2 million) while market volume increased by 9 per cent, averaging 40.5 million shares per day.
Sacombank (STB) was the most active share on the southern bourse with more than 2.2 million traded per day. The share value gained 2.37 per cent from the previous week's close, reaching VND17,300 ($0.91).
On the Ha Noi Stock Exchange, the HNX-Index also advanced by a whopping 3.14 per cent to end the week's trades at 161.12. Value of day trades rose 36 per cent to nearly VND1.18 trillion ($62.1 million) on a volume of 40.7 million shares per day.
Kim Long Securities (KLS) became the most heavily traded share nationwide with over 4.1 million changing hands per day. KLS rose 7.34 per cent over the previous week's close to VND19,000 ($1).
VEIL shareholders' decision to continue the fund's operation on late Monday inflamed the market on Tuesday, sending the indices up on both exchanges with a gain of 1.83 per cent in the south and 2.75 per cent in the north, the highest intra-day gains in the last two months.
Securities stocks rose to their ceiling prices in Tuesday and Wednesday's sessions, including Saigon Securities Inc (SSI), HCM City Securities (HCM), Agribank Securities (AGR) on the HCM City market and Kim Long Securities (KLS), VNDirect Securities (VND), Orient Securities (ORS) and Au Viet Securities (AVS) on the Ha Noi market. However, they retreated on Thursday's session.
Vietstock Finance's report showed major gainers were still penny stocks while blue-chip trading remained sluggish.
The top three stocks in value gains included Meca Vneco Investment and Electricity Construction Company (VES), Lilama 10 (L10) and Vinafco Corporation (VFC) on the HCM City bourse and Gia Lai Culture-Tourism Company (CTC), TNG Investment and Trading Comapny (TNG) and SARA Company (SRB) on the Ha Noi bourse.
Though investors were positive, the market hovered around 505 points, indicating that positive first-half earnings results of listed companies were not strong enough to lead a solid uptrend, FPT Securities Co's analyst Nguyen Van Quy said.
"The resistance mark of 515 points proves strong and the market still moves in the accumulation period," Quy said, noting large capital investment was sitting out the market due to low profits.
"The market will continue to move sideways unless there is a combination of good corporate earnings, lower interest rates and development of the global stock markets," he said.
Vietstock's analysts also said capital investment did not support a market rise as interest rates were still high and banks were reluctant to offer loans for securities investment.
Investors remained suspicious about a solid uptrend and only want to buy at low price levels, they said.
Vietstock's analysts predicted the market was likely to move upwards this week with penny stocks with positive earnings results continuing to attract investment.
Foreign investors continued as net buyers on both exchanges, being responsible for a net value of over VND191 billion ($10.1 million) on the HCM City market and nearly VND11 billion ($579,000) on the Ha Noi market.