Thang Long - Hanoi

Stocks rebound from two days of losses
10/12/2010 | 14:21:13
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Shares rebounded in the latter half of Dec. 9's sessions on both the HCM City and Hanoi stock exchanges, with rallying indices helping reverse two days of market corrections.

On the HCM Stock Exchange, the VN-Index jumped 1.68 percent to close at 460.45 points. However, the volume of trades decreased by 16.6 percent from Dec. 8's session to 59.8 million shares, worth a combined 1.35 trillion VND (64.3 million USD). Advancers outnumbered decliners by 189-46, while 42 codes hit their ceiling prices.

Only nine codes slumped to the floor compared to about two-thirds of stocks on Dec. 8.

Among blue chips, Sacombank (STB) rose by 4.2 percent, Phu My Fertilisers (DPM) by 3.8 percent, Hoa Phat Group (HPG) by 3.1 percent, and software giant FPT by 1.5 percent.

PetroVietnam Finance (PVF) and Saigon Securities Inc (SSI) soared to their ceiling prices.

Property developer Quoc Cuong Gia Lai Co (QCG) became the most active on the southern bourse, with almost 5.6 million shares traded. QCG rose 0.3 percent to close at 29,000 VND (1.38 USD).

After two consecutive days of losses, many shares had dropped to attractive price levels again, prompting bottom-seeking investors to increase buying, particularly in blue chips, said analysts with Au Viet Securities Co.

"This is a positive sign showing that cash flow is still flowing into the stock market," they wrote in their daily report.

On the Hanoi Stock Exchange on Dec. 9, the HNX-Index gained 1.48 percent to close at 112.13 points. Volume decreased slightly to 62.2 million shares, totaling over 1.16 trillion VND (55.2 million USD). Advancers and decliners were split by 188-107, while Kim Long Securities (KLS) was again the most heavily-traded stock nationwide on a volume of 6.71 million shares.

KLS closed up 1.3 percent on Dec. 9 to 15,900 VND (0.75 USD) per share. Foreign investors continued to be net buyers on both national stock exchange, picking up a combined 2.6 million stocks worth just 37 billion VND (1.8 million USD).

The State Securities Commission recently estimated that net foreign capital inflows to the stock market had reached 920 million USD by the end of November. Of that figure, over 600 million USD was poured into listed stocks, while the remaining was in the form of over-the-counter share purchases, fund certificates and bonds.

The commission has completed a draft plan aimed at attracting foreign investment by increasing the percentage of foreign ownership in domestic companies and completing a legal framework to support derivative products and overseas securities issues./.
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