Negotiated trades helped sustain the VN-Index again yesterday, lifting it by 0.57 per cent to a close of 452.63 points. The value of executed trades reached VND446.1 billion (US$22.9 million)and accounted for 44.7 per cent of total value, with nearly 11 million shares traded.
Some major shares saw values in excess of VND1 million value from negotiated trading, including Sacombank (STB), real estate developer Hoang Anh Gia Lai (HAG) and dairy giant Vinamilk (VNM).
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| Investors watch trading boards at SSI Securities. —VNS Photo Viet Thanh |
The total value of transactions on the HCM City Stock Exchange nearly returned to the VND1 trillion level to VND998.7 billion (US$51.2 million), and the overall volume of trades, at 32.4 million shares, representing a 40.3-per-cent increase over Thursday's activity.
Nguyen Trung Dung, an investor with Quoc Viet Securities Co, conjectured that this week's explosion in negotiated trades might be due to portfolio transfers from Dragon Capital's Viet Nam Dragon Fund to its Japan-listed Dragon Capital Viet Nam Fund.
On October 22, Dragon Capital published the result by a vote of the stakeholders in the Viet Nam Dragon Fund that the fund should begin shifting holdings to the Dragon Capital Viet Nam Fund.
Dragon Capital business development director Pham Nguyen Vinh said that the shift would be divided into phases and finalised over a period of two or three months. The shift was not expected to have an impact on market values as it was just a shift of holdings from one portfolio to another and not a net buy or sell.
On the Ha Noi Stock Exchange yesterday, the HNX-Index managed a gain of over 1.2 per cent, closing yesterday trades at 112.86 points.
However, volume continued poor with only 17.5 million shares changing hands, totalling VND350.6 billion ($18 million). PetroVietnam Construction (PVX), the nation's most active share, saw 2.7 million shares traded.
Nguyen Hoai Son, a Ha Noi-based broker, attributed yesterday rallies to a new circular publicised by the State Bank of Viet Nam late Thursday which forbids commercial banks from lending cash against gold deposits.
Online newspaper vneconomy.vn quoted a State Bank official as saying that a large amount of gold being held by investors would likely be converted to cash to invest in elsewhere.
"The news helped calm down concerns over the foreign exchange market in the last few days and raised expectations of capital inflows returning to the securities markets," Son said.
