Upbeat sentiment on Singapore’s economy lifts stocks

The Ho Chi Minh Stock Exchange bounced back on Wednesday, following upbeat sentiment boosted by Singapore’s economic rebound, brokers said.

The VN-Index rose, snapping six days of declines on the Ho Chi Minh Stock Exchange, climbed 8.5 points, 2.03 percent, to close at 427.05.

Of the index’s members, 121 stocks gained and 19 dropped.

“Recent buying from foreign investors, combined with news about a strong rally in Singapore’s economy, encouraged investors to believe that now is the time to return to the market,” said one broker in Ho Chi Minh City.

Southeast Asian stocks may gain favor among investors at the expense of other regional markets, Bloomberg quoted Credit Suisse Group AG as saying.

Singapore’s economy last quarter expanded for the first time in a year, by 20.4 percent from the previous three months, data compiled by Bloomberg showed yesterday.

Foreigners remained net buyers for 15 days in a row, pumping in VND68 billion today.

Thanh Cong Textile Garment (TCM), a maker of textiles and garments, rose for the first time in four days, gaining 3.6 percent, to VND14,600. Ho Chi Minh City-based Thanh Cong announced on its website late yesterday that it will issue bonus shares to its investors next month.

Shareholders will get 12 new shares for every 100 they hold, the company said.
These shares are expected to be listed on the exchange on August 20.

Tan Tao Investment Industry (ITA), a builder and operator of industrial parks, surged the most in three weeks, rising 4.9 percent, to VND29,900.

The company yesterday signed a deal to build a cement factory in northern Vietnam in the third quarter, according to Tan Tao’s website. The plant will be operational in 2011 and have an annual capacity of one million tons, a company statement said.

Viet-Han Corporation, (VHG), which manufactures telecommunications cables, materials and fiber-reinforced polymer products, slid for a third day, declining 1.74 percent, to VND113,000, the lowest since June 1.

Indochina Capital Vietnam Holdings sold 530,200 shares and cut its stake to 2.1 million shares, 8.6 percent, from 10.7 percent, according to a statement filed on the exchange’s website.

At the Hanoi Stock Exchange, the HNX-Index edged up 2.22 points, 1.58 percent, to close at 142.9.

Reported by Phuc Huy

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