Riding high on the release of data on Thursday showing inflation in HCM City and Ha Noi in April of less than a fifth of a percent, blue chip shares once again rallied on the HCM City Stock Exchange, with many hitting their ceiling prices.
The VN-Index advanced by 1.85 per cent on the day to a close of 529.31 points, while the value of trades soared by over 35 per cent to VND3.18 trillion (US$167.4 million) on a volume of 78.3 million shares.
After nearly a month of focusing on penny stocks, investors began to shift attention back to large-cap shares, with Saigon Securities Inc (SSI), Gemadept (GMD), Song Da Urban and Industrial Zone Investment and Development (SJS), Hoang Anh Gia Lai Company (HAG), Vincom (VIC) and Vietcombank (VCB) all registering big gains.
Penny stocks that had been advancing, such as Hapaco (HAP), Viet-Han Company (VHG), Long An Food Processing & Export (LAF), Vietnam Mechanisation Electrification and Construction Company (MCG) and Sao Mai Construction Company (ASM) all eased yesterday after several successive ceiling-hitting sessions.
Gainers outnumbered decliners by 120-68, with SSI claiming the spot as most-active share with over 3.5 million traded.
Many analysts agreed yesterday release about the April consumer-price-index helped consolidate investors confidence in a more loosened monetary policy. Inflation rate rose by 0.23 per cent in HCM City and 0.2 per cent in Ha Noi.
On the Ha Noi Stock Exchange yesterday, the HNX-Index advanced by a weaker 0.26 per cent on mixed trading, ending the session at 178.33. But rading volume rose by 29 per cent to over 77.2 million shares, worth a combined VND2.7 trillion ($142.1 million) – an increase of 15 per cent.
Market leaders like Asia Commercial Bank (ACB), Vinaconex (VCG), PetroVietnam Construction (PVX), Bao Viet Securities Company (BVS) all posted gains, while shares in the Song Da and Vinaconex groups of companies also continued to rise.
Overall, however, decliners outnumbered gainers by 146-120.
The northern market yesterday welcomed three new listings from Au Viet Securities Company (AVS), Licogi 13 (LIG) and Viet-Duc Welding and Electrode Company (QHD).
AVS closing up to VND15,500 ($0.82) per share on the first trading day, on a volume of 453,700 shares out of 36 million listed. LIG closed at VND49,500 ($2.60) on a volume of 585,800 out of 6 million shares listed, while QHD closed up to VND70,000 ($3.68) on a volume of just 12,100 shares out of a total listing of over 2.7 million. Investors have been flocking to penny stocks in part due to their early first-quarter earnings reports and optimistic outlooks for the year, while there was little such supporting information from the market leaders, said Hoa Binh Securities Company Deputy Director Nguyen Huy Duong. "However, with the release of earnings data from major companies this week, we should get a clear picture of the market," he added.
Economic recovery should help the stock market reach 600 in the second quarter, following an easing in monetary policy, predicted Asia-Pacific Securities Company Chairman Pham Thanh Tung.
Foreign investors concluded yesterday as net buyers on both national exchanges, responsible for a net value of VND211 billion ($11.1 million). Both HCM City and Ha Noi exchanges will close today and reopen on Monday.