VN-Index jumps to over-one-year high

[phuocpham]

The Ho Chi Minh Stock Exchange on Friday stretched its winning streak to seven days in a row amid investors focused on bonus share issuances, brokers said.

VN-Index, Vietnam’s major stock exchange, jumped above the resistance level of 570 points, gaining 9.82 points, or 1.75 percent, to close at 571.01. This is the highest level in more than one year.

Of the index’s 174 members, 93 stocks advanced, 52 dropped and 29 unchanged. As investors unwilling to sell over speculations on further rises, turnover dropped 14 percent from the previous session, with 65.8 million shares worth VND3.24 trillion being traded.

“The market seems to be focused more and more on potential or actual bonus share issuances as an incentive to push up equity prices short term. This is often the sign of an overheating market as earnings and valuations are taking a back seat,” Ho Chi Minh City Securities Corporation (HSC) said in a daily market comment.

Finance stocks mixed today, with insurer Bao Viet (BVH), Saigon Securities Inc. (SSI), Vietcombank (VCB) remaining on upwards momentum while Sacombank (STB) losing grounds due to profit taking.

Property stocks, meanwhile, all rose over sharp buying as investors expected construction sector will grow robustly in upcoming time.

Song Da Urban & Industrial Zone Investment & Development Joint-Stock Co. (SJS), known as SUDICO, surged 4.74 percent to VND199,000. The Hanoi-based builder plans to sell an extra 60 million shares to raise VND600 billion ($34 million). It will use the proceeds to fund investment projects, according to a statement on the Ho Chi Minh Stock Exchange’s Web site.

Vietnam Italy Steel Joint-Stock Co. (VIS), which manufactures and supplies construction steels, rose 3.49 percent to VND89,000. Prices of key commodities including rice and steel will be stable for three months as supply and demand are in balance, Thoi Bao Kinh Te Vietnam said, citing the Ministry of Planning and Investment. Demand for steel is estimated at 10.7 million tons and supply of the metal will be about 10.9 million tons, Thoi Bao said.

HNX-Index kết thúc ngày cuối tuần đã tăng nhẹ 1,78 điểm (1,02%), đóng cửa tại 176,46 điểm. Tổng khối lượng giao dịch toàn thị trường đạt 37,9 triệu chứng khoán, trị giá 1.350 tỷ đồng.

Đến 11h, UPCoM-Index ghi nhận 30,2 nghìn cổ phiếu chuyển nhượng, ứng với 422 triệu đồng. Thị trường giao dịch cổ phiếu công ty đại chúng chưa niêm yết tạm dừng tại 63,85 điểm, hạ thêm 0,79 điểm (1,22%).

In Hanoi, the HNX-Index inched up 1.78 points, or 1.02 percent, to finish at 176.46, while the UPCoM-Index of unlisted stocks crept down 0.79 point, or 1.22 percent, to close at 63.85.