Vietnam’s benchmark VN-Index gained for the second straight day Thursday as the gold and dollar fevers began to break, protecting investors from the fear of a dong slump.
The shares of 181 companies and four mutual funds listed on the Ho Chi Minh Stock Exchange rose 1.56 percent or 8.39 points to 545.98. Yet investors still hesitate to make big purchases, as the trading volume dropped to around 50 million shares, worth VND2.32 trillion (US$130 million).
On the index, 158 advanced, nine dropped and 18 remained unchanged.
Gains on the southern market were led by SMC Trading and Investment Joint Stock Co. (SMC), a building material trader in HCM City; Tan Binh Electronic Joint Stock Co. (VTB) also in the city; and Thong Nhat Rubber Joint Stock Co. in the nearby Ba Ria-Vung Tau Province. All three stocks gained by the maximum five percent allowed by the exchange.
Saigon Commercial Bank, or Sacombank, (STB) became the most active stock in volume Thursday with more than three million shares traded on the city bourse.
Saigon Securities Inc., Vietnam’s largest brokerage, came next with nearly two million shares changing hands, and Vietnam Export Import Bank or Eximbank (EIB) with around 1.9 million shares.
Rubber stocks have started to enjoy robust growth as Hoa Binh Rubber Joint Stock Co. (HRC) on Wednesday rose 4.8 percent, Tay Ninh Rubber Joint Stock Co. (TRC) advanced 4.7 percent, and Dong Phu Rubber Joint Stock Co. (DPR) gained 4.6 percent.
Rubber futures in Tokyo increased for a third time in four days Wednesday as data from China and Japan, Asia’s two largest consumers of the commodity, boosted optimism an economic recovery will increase demand, Bloomberg said.
Orders for Japanese machinery climbed more than economists expected in September, and China’s industrial production and retail sales accelerated in October, bolstering forecasts for economic growth to exceed ten percent this quarter for the first time in more than a year.
Japan’s Asiavantage Global Ltd. on Wednesday bought 850,000 shares to hold a 5.2 percent stake in the Hanoi-based Tu Liem Urban Development Joint Stock Co. (NTL), which rallied five percent Thursday, according to a statement on the exchange’s website.
Ho Chi Minh City-based Refrigeration Electrical Engineering Joint Stock Co. (REE) on Wednesday bought 6.35 million shares in Thac Ba Hydropower Joint Stock Co. (TBC), which rose 2.2 percent on Wednesday and was unchanged Thursday, to keep a ten percent holding in the company based in the northern province of Yen Bai, Thac Ba said in a statement to the bourse’s website.
The northern market also performed well as the HNX-Index gained 1.78 points, 0.97 percent, to 184.37. Around 23.1 million shares worth VND954 billion changed hands.
The UP-CoM index fell to 67.32, down 1.24 points or 1.81 percent over Wednesday. A total of 83,834 shares were traded at VND1 billion.
On the global market, US stocks finished Wednesday with modest gains, with the Dow Jones Industrial Average extending its winning streak to a sixth session as Federal Reserve officials pointed to low interest rates for a little while longer.