Market rises as cheap stocks go on sale

Vietnam’s benchmark VN-Index surged Thursday after three losing days in a row after investors realized stocks were cheap enough to buy.

The index, which tracks 180 companies and four mutual funds on the Ho Chi Minh Stock Exchange, rose 18.01 points, 3.35 percent, to close 555.54. Trading dropped, with 57.3 million shares worth VND2.5 trillion (US$140 million) changed hands.

Many companies on the city bourse have dropped around 30 percent compared to the record high prices of the year, drawing investors to return.

On the index, gains outnumbered declines by 176 to 7 and two were unchanged.

Masan Group (MSN), a HCM City-based food processor, marked its first trading day on the Southern market as the biggest winner, selling at VND43,200.

Cadovimex Seafood Import Export Processing Joint Stock Co. (CAD), based in the Mekong Delta province of Ca Mau, came next, followed by Phuoc Hoa Rubber Joint Stock Co. (PHR) in Binh Duong Province neighboring HCMC.

Vietnam Export Import Bank, or Eximbank (EIB,) returned to the spot of most active shares with 2.98 million shares traded on the city bourse.

Saigon Commercial Bank, or Sacombank (STB), followed with nearly 2.75 million shares changing hands and the city based-Thanh Cong Garment and Textile Group (TCM) with nearly 2.7 million shares.

Saigon Securities’ fund unit, known as SSI Vision Fund, has cut its stake in the Southern Seed Corp. (SSC), a Vietnamese producer of crop seeds for farmers, to 10.9 percent from 12.08 percent, according to a statement on the exchange’s website.

Meanwhile, Lam Son Sugar Joint Stock Co. (LSS), a sugar and industrial alcohol producer, plans to build two resorts in the northern province of Thanh Hoa, where the company is based, CEO and chairman Le Van Tam told Bloomberg Wednesday. He did not give a timeframe for the construction of the projects.

The green was also seen on the Northern market, as the HNX-Index gained 5.28 points, 2.85 percent, to close at 190.27. Nearly 32.2 million shares were traded at VND1.33 trillion.

UPCoM-Index closed at 71.52, up 0.95 points, 1.35 percent, over Wednesday. A total of 62,996 shares were traded at VND1.41 billion.

On the global market, US stocks were led by growth in health care orders and prices while jobs data boosted hopes for the US government’s monthly jobs report Friday.

Stocks were also taking their cues from the dollar, which has been weakening against the euro since the opening bell.    

By Thieu Gia

Other news