Gains by real estate shares continued as a major force driving the HCM City Stock Exchange yesterday, pushing the VN-Index up 4.88 points to close at 582.85.

Trading volume continued to improve, reaching 67.2 million shares, for a turnover of VND3.5 trillion (US$196.6 million). Sacombank (STB) led the southern bourse with 5.9 million shares traded, followed closely by VietFund Management (VFMVF1) with 5.7 million.

Binh Chanh Construction and Investment (BCI) and Thu Duc Housing (TDH) were among the property shares buoying the Index.

Banking shares, meanwhile, still failed to recover their vigor, with Vietinbank (CTG) and Vietcombank (VCB) falling slightly on the day.

In their debut on the HCM City market, shares of Rang Dong Plastics (RDP) hit the ceiling of their 20-per-cent regulated trading band, closing at VND18,000 per share.

On the Ha Noi Stock Exchange, the HNX-Index closed up 1.02 per cent at 179.63 points, as trading volume increased 18 per cent over Monday’s session to 39.8 million shares, with a total value of VND1.5 trillion ($84.3 million).

Kim Long Securities (KLS) led the northern market with 3.8 million shares traded, followed by Sai Gon-Ha Noi Bank (SHB), with 2.8 million. Shares of Asia Commercial Bank (ACB) and the Bao Viet, Hai Phong and Vietinbank securities firms were also among the most active.

Construction shares including Vinaconex (VCG) and shares in the Song Da family remained as the major motivators for gains on the HNX-Index gain.

EuroCapital Securities Co analysts said recent dramatic gains in contruction and real estate shares were not surprising as firms in these fields had consistently posted positive business results as well as news about new projects that promised medium- to long-term development potential.

But, they noted, satisfactory trading had also been seen in almost all other shares across the board.

"The market is seeing good news from most listed firms, and the news has almost immediately been reflected in share price developments," they said in a report. "We are confident in upward moves at this time, although sales are being accelerated as the index reaches high levels."

"For long-term investors, we suppose that maintaining current holdings and gradually buying into blue chips would be the right choice," suggested VNDirect Securities Co analyst Dang Nguyen Cuong.

In HCM City yesterday, foreign investors were net sellers of 1.6 million shares, with a net value of VND155.5 billion ($8.7 million). In Ha Noi, overseas clients were net buyers of 113,000 shares but were net sellers by value of VND1.2 billion ($67,400).