Vietnam’s benchmark VN Index Thursday edged up 0.9 percent to close at 624.1 and a brokerage said the market has rallied much faster than the economic recovery.

Of the index’s 183 members, 88 increased, 82 decreased and 13 remained unchanged. Nearly 93 million shares worth VND4.9 trillion (US$275 million) changed hands.

Le Van Minh, director in the Ho Chi Minh City branch at Agribank Securities, or Agriseco, said, “Vietnam’s stock market has rallied much faster than the recovery in the economy. Prices of some companies have jumped to a very high level, even higher than when the VN-Index touched the peak of more than 1,000 points in March 2007.

“We have seen so much information recently saying that earnings of listed companies have surpassed targets. However, investors should bear in mind that most of the companies, at the beginning of the year, had set very low full-year targets, because they didn’t know how the recovery would happen.

“Investors are waiting for a decision from the government on the launch of the second stimulus package. If it is approved, the stock market will become more exciting.”

Foreign investors have turned net sellers, dumping a net value of VND162 million.

Stock performance

Saigon Securities Inc. (SSI) jumped 4.9 percent to VND107,000, the highest since February 25, 2008. The stock has more than tripled this year.

The Ho Chi Minh City-based company plans to sell VND2 trillion ($112 million) of convertible bonds in the first quarter next year to fund investments, Nguyen Duy Hung, chief executive officer of the company said in a telephone interview Thursday.

“With the positive prospects for the economy and the rebound in the stock market, investment opportunities are opening to us and we need to raise funds,” Hung said.

Vietnam Mechanization Electrification & Construction Joint- Stock Co. (MCG), which offers construction services and manufactures machinery, fell 1.5 percent to VND45,900 dong. Major shareholder PetroVietnam Finance Joint-Stock Co. cut its stake in the company to 9.9 percent from 12.12 percent by selling 293,400 shares, according to a statement on the exchange’s website.

Sieu Thanh Joint-Stock Co. (ST8), which distributes office automation equipment including copiers and facsimile machines, gained 4.9 percent to VND38,600. The company said profit reached VND47.5 billion in the nine months till end-September, equivalent to 90.5 percent of the company’s full-year target, according to a statement on the exchange’s website.