VN-Index Revives

To many investors, the government’s assistance and support to revive the stock market just two days ago really worked. At the HCMC bourse, yesterday, over 52 million shares changed hands. And in this morning trading session, 153 listed stocks and treasury certificates were reported to have all gone limit up.

The VN- Index rose as much as it could by climbing up 28.97 points to close at 640.14, far beyond the threshold 583.45 points of 2 days ago

The volumes of buying orders were repeatedly higher than selling ones. At the end of trading session, the total volume of buying orders of the two biggest caps Sacombank (STB) and Phu My Fertilizer and Chemicals (DPM) at the ceiling prices reached 8 million.

The need for DPM was so high that no holder of this kind of stock dared to sell them out, resulting in small transactions with a total of 66,930 shares changed hands.

STB was subject to the same fate with 251,110 matching orders, the lowest rate ever recorded since the beginning of 2008.

By proving higher liquidity than STB and DPM’s,  Pha Lai Thermal Power (PPC) spectacularly attracted investors’ intention  with over 1.53 million of shares worth VND68 billion changed hands.

Some investors feared that with a large volume of matching orders, PPC may witness a drop soon. They pointed out that any drop of any leading stock which has a capital over VND1,000 billion at this period of time may cool down the newly-revived stock market.

Based on the current trend in the market, analysts forecast that the first trading session of next week will bring further optimism to investors, but warned small investors against potential risks by pointing out that the market cannot be fully recovered after just such a short time.

If the VN-Index can hover between 650-700 points next week, this can be seen as an encouraging success of the markets, added analysts.

By Tuong Chau – Translated by Phuong Lan

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