Shares posted modest gains yesterday on both of the nation's stock exchanges after two consecutive days of losses, but market volume retreated as investors remained uncertain over the effect of the central bank's newly announced gold import permit.
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| Shares posted modest gains yesterday on both of the nation's stock exchanges. Investors at the Bao Viet Securities. — VNS Photo Viet Thanh |
Nguyen Hai Yen, an analyst at Bao Viet Securities Co, said Government permission to import gold could drive the exchange rate up and further damage the nation's trade balance.
"It [the market] needs time to verify the real effect of this measure," Yen said. "However, this can also be a technical measure the State Bank of Viet Nam uses in order to calm public psychology."
ACB Securities Co analysts said recent changes in policy by the SBV, including the prime interest rate increase last Friday, made securities investment riskier.
However, they said the decision to allow imports of gold had driven the domestic price down.
"Increases in the price of gold, the US dollar and the interest rate are further weighing on investor concerns over high inflation," they said.
On the HCM City Stock Exchange, a rally by several blue chips lifted the VN-Index back above 450 to close at 451.26 – a rise of 0.41 per cent over yesterday.
Both market volume and value declined, with more than 25.1 million shares worth almost VND618.6 billion (US$29.5 million) changing hands – a 43 per cent decrease in both volume and value.
Decliners outnumbered advancers by 109-89.
Many blue chips rallied thanks to heavy purchase by foreign investors. While insurer Bao Viet Holdings (BVH) rose to its ceiling price, Phu My Fertiliser (DPM) climbed 2.3 per cent, Ocean Group (OGC) increased 1.66 per cent and software giant FPT Corp (FPT) rose 1.36 per cent.
However, financial and securities shares tumbled. Vietinbank (CTG) fell 0.52 per cent, Sacombank (STB) 1.3 per cent, HCM City Securities (HCM) 0.4 per cent and Sai Gon Securities Inc (SSI) 0.82 per cent, with the latter being the most active stock with 1.25 million shares changing hands.
On the Ha Noi Stock Exchange, the HNX-Index increased 0.33 per cent to close at 107.18. The bourse's market volume fell 13 per cent to 22.6 million, worth VND363.9 billion ($17.3 million).
Gainers narrowly outnumbered losers by 132-121.
PetroVietnam Construction (PVX) continued to be the most heavily traded stock, with 1.85 million shares changing hands. PVX closed unchanged with an average share priced at VND20,900 ($0.99).
Foreign investors remained net buyers on both exchanges, responsible for the purchase of more than 1.9 million shares worth VND82 billion ($3.9 million).
