VN-Index rises above 320 on record turnover

The Ho Chi Minh Stock Exchange stretched its winning run to four straight days on Tuesday as turnover surged to a record level.

The VN-Index gained 12.08 points, or 3.89 percent, to close at 322.36.

Volumes topped 45.4 million shares worth VND1.2 trillion (US$67.4 million) as all but 10 stocks closed up.

Foreign investors sold to take profits, offloading VND29.2 billion worth securities.

Brokers said investors who failed to buy last week are continuing to buy. The facts that the index went past the resistance level of 320 on heavy buying also encouraged others standing on the sidelines to buy, they said.

But some were afraid of a correction and sold to book profits, they said.

The government’s new subsidy program has buoyed sentiment, they pointed out.

The Government is using VND17 trillion (US$960 million) from an economic stimulus package to provide a 4-percent interest subsidy on loans to companies that export, import or produce essential goods.

Originally, the interest subsidies were meant for a period of eight months but the Government then decided to expand the program, offering the subsidies for up to two years on medium- and long-term loans. Firms can take loans not only for doing business but also for upgrading facilities.

More than VND202 trillion ($11.4 billion) has been lent under the program, according to the Government website.

On the market, Sacombank remained the most liquid stock, with more than 6.7 million shares worth VND122 billion being traded. The HCMC-based lender ended higher 4.55 percent at VND18,400.

Truong Thanh Furniture Corporation (TTF) rose 4.5 percent to close at VND11,600. The furniture maker received approval from the exchange to issue 5 million additional shares on April 9.

Hoa Phat Group (HPG) increased 4.8 percent to VND37,100. The steel maker will pay a dividend of VND1,000 per share, according to a report on the bourse’s website. It will go ex-dividend on April 14.

PetroVietnam Fertilizer and Chemical Joint-Stock Company (DPM) rose 4.96 percent to finish at VND38,100. The company, Vietnam’s biggest fertilizer producer, announced that it would pay a dividend of VND500 per share.

At the smaller exchange in Hanoi, the HaSTC-Index also staged a strong rally, surging 5.45, or 5.01 percent, to 114.3.

Reported by Thieu Gia

Other news