Market Roars Back as Investor Confidence Rises

The Ho Chi Minh Stock Exchange roared above 525 points after taking a breather Wednesday as investors believe the market is on the road to recovery.

Investors watch the electronic stock board in a trading session (Photo: Thieu Gia)

The VN-Index, the gauge of the 156 leading companies and four closed-end funds listed on the exchange, gained 17.51 points, or 3.44 percent, to close at 525.98.

Heavy buying appeared soon after the opening bell, pushing the benchmark index up in the first session. VN-Index rose slightly in the second session as many small caps dipped while most of stocks of companies with large market capitalization remained continued to rise.

The index rallied strongly at the end of the second session as investors were back in a buying mood.

“The HCMC market edged down 0.6 percent on Wednesday, but share demand remained high, making investors believe it will bounce back strongly in the next trading day,” said one dealer. “Therefore, they bought strongly today. With the current high sentiment on the marketplace, I expect VN-Index would break above the 550 mark next week.”

Trading volume reached more than 24 million shares worth VND987.81 billion (US$60 million). Some 137 stocks rose and only 12 fell.

Sacombank remained the most active stock by volume, with more than 6.38 million shares exchanging hands.

Sacombank, PetroVietnam Fertilizer and Chemical Joint Stock Company, the drilling firm PV Drilling, Pha Lai Thermal Power, FPT Corp, brokerage SSI and industrial zone operator Tan Tao were the six large caps, which hit the  5 percent trading band limit.

Steel maker Hoa Phat Group, which has obtained approval to offer 56 million more shares on the exchange, added VND3,000 to close at VND77,500 (US$4.70).

DHG Pharmaceutical Joint Stock Company, plastics maker Da Nang and paint manufacturer Dong Nai dropped.

Foreigners Thursday sold heavily and took profits, notched up VND194 billion (US$11.7 million). They also spent VND127 billion (US$7.7 million) to buy shares.

At the Hanoi Securities Trading Center, the HaSTC-Index gained 6.18 points, or 3.94 percent, to finish at 162.96.

Reported by Thieu Gia By Thieu Gia

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