The VN-Index gained 1.45 per cent yesterday to close at 455.12 points, as the volume of trades on the HCM City Stock Exchange jumped by 23 per cent over Monday's level, to 34 million shares, worth a combined total of VND821.1 billion (US$42.1 million).
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| Smiles green yesterday's rise in the VN-Index at the offices of ACB Securities Company. — VNS Photo Viet Thanh |
Advancers outnumbered decliners by 212-33, with over 35 stocks rising to the top of their regulated trading bands, including Thu Duc Housing Development (TDH), Urban Development and Construction (UDC), My Chau Printing and Packaging (MCP) and Hang Xanh Motor Service (HAX).
Many other major shares returned to positive territory, as well, including insurer Bao Viet Holdings (BVH), software giant FPT, financial conglomerate Ocean Group (OGC), and Sacombank (STB).
Foreign investors contributed to the HCM City rally by buying nearly a million shares worth a net of VND63.7 billion ($3.3 million). They remained net sellers on the Ha Noi market, however, unloading 287,000 shares worth a net of VND5.2 billion ($266,666).
Nevertheless, shares rose even more substantially on the Ha Noi Stock Exchange yesterday, with the HNX-Index closing up 2.88 per cent to end the session at 114.99 points.
The value of trades on the northern bourse rose by an impressive 65.8 per cent over Monday's session to VND663.7 billion ($34 million), on a total volume of 33.7 million shares.
Nearly half of the 345 listed stocks in Ha Noi reached their ceiling prices, with the shares of securities companies like Wall Street Securities (WSS), Kim Long Securities (KLS), and APEC Securities (APS) contributing substantially to the rally. Shares in the Song Da Corporation family, including Song Da No 1.01 (SD1), Song Da No 6.06 (SD6), and Song Da No 2.02 (SD2) also performing strongly.
Yesterday's session marked the second day in which penny stocks performed well, suggesting that ‘hot money' was returning to the stock markets, observed Le Cong, an analyst with financial services provider Stoxplus.
"If the infusion remains positive like today, the VN-Index will surpass the 460 resistance mark which it failed to conquer before," Cong said.
Nguyen Cong Hoan, a veteran investor in Ha Noi, said that the market advance yesterday could be a test of market demand at higher price levels.
"Normally, a rally like today comes with an explosive volume," Hoan said. "But volumes stayed low today, meaning that buyers aren't quite ready to jump into the markets."
The markets would need some additional days to confirm whether capital flows have really returned, Hoan added. "If penny stocks retain their activeness, I believe a short-term bull market will be set up."
