Week ends with two new listings
The final day of this week’s trading at HCM City Stock Exchange saw two northern- headquartered companies, TMT Motors Corp, (TMT) and the IT firm CMC Corp, (CMG), list on its bourse.
TMT runs the Cuu Long Motor truck assembly and manufacturing plant in Pho Noi A Industrial Park in Hung Yen Province. This Cuu Long Motor Company is among Viet Nam’s top 100 brands and enjoys a market share of almost 38 per cent.
TMT has a charter capital of VND126 billion (US$6.8 million) and chairman Bui Van Huu said the figure was planned to increase to VND300 billion this year.
The company earned a net profit of VND98 billion in 2009.
The newly listed motor manufacturer closed its first trading day at VND55,000 on its reference of VND46,000.
CMG, capitalised at over VND635 billion, operates in computer and telecommunication device manufacturing and software services.
Chairman Ha The Minh said this year’s pre-tax profit is expected to reach VND207 billion, up from last year’s VND147 billion.
CMG closed at its reference price of VND35,000.
Some bottom-catching efforts by investors on Friday cushioned the hard fall in shares on the HCM City Stock Exchange, allowing the VN-Index to end the day off just 0.17 percent at 477.59 points.
The volume of the day’s trades, however, dropped by 26 per cent to about 29.6 million shares, while the combined value fell by 33 percent to VND1.2 trillion (US$63.8 million).
Sacombank (STB), with 1.3 million trod, and Eximbank (EIB), with 1.1 million, were the most active shares on the HCM City market.
The Ha Noi Stock Exchange also trod water yesterday on slow trading, with the HNX-Index closing essentially unchanged at 157.58 points.
The value of trades neared VND596.5 billion ($31.7 million), down 23.7 percent from the previous session, on a volume of 19.3 million shares. Kim Long Securities (KLS) continued to be the nation’s most active share, with over 3.2 million traded.
The northern bourse yesterday welcomed the listing of 5.4 million shares of Agricultural Printing and Packaging Co (INN). INN closed the first day of trading down 5 per cent to VND22,300 ($1.20) per share on a volume of 10,000.
The market was still in the process of adjustment due to the pessimistic psychology of investors, opined Bao Viet Securities Company analyst Nguyen Duc Thi.
"Investors are in a state of overreaction towards any negative indicators," Thi said.
Meanwhile, they were overlooking favourable information such as a lower-than-expected inflation rate in January and the State Bank’s denial of rumours of a rise in the prime rate, he said.
Individual investors had become disoriented, with a short-term focus, driving them to hastily sell off shares now that the market had dropped below its resistance mark of 480, said HCM City-based investor Le Van Thang.
However, some local and foreign investors were active in buys, aiming to catch historic-lows in price of sound shares before the next rebound, Thang said, admitting he himself had picked up a considerable quantity of shares at depressed prices.
Foreign investors helped shore up yesterday’s trades as net buyers on both bourses, though on reduced volume. They were responsible for net buys of almost 800,000 shares, worth a combined VND34.75 billion ($1.8 million).