Thursday, August 24, 2017 - 12:11:52

Shares up in cautious trading

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Shares added value on Aug. 8, but trading remained sluggish.

On the Ho Chi Minh Stock Exchange, the VN-Index inched up 0.25 percent to 423.57 points, with 131 advancers, 78 decliners and 82 codes closing unchanged.

The losses of some blue chips tracked by the VN30 prevented indices from gaining more. Insurer Bao Viet Holdings (BVH), software developer FPT (FPT), construction firm Dic Corp (DIG) and Vinamilk (VNM) lost between 0.2-1.2 percent.

The VN30 also added 0.33 percent to close at 503.74 points.

Investors remained cautious, trading only 23.8 million shares worth 349.5 billion VND (16.6 million USD), dropping 36.3 percent compared to Tuesday's level.

On the Hanoi Stock Exchange, the HNX-Index closed up 1.3 percent at 70.48 points.

Value decreased slightly to 529.5 billion VND (25.2 million USD) on a volume of 39.6 million shares.

Major shares in Hanoi helped the HNX30 rise over 2 percent, reaching 135.10 points.

Habubank (HBB) was the most active stock, with around 3.4 million shares changing hands. HBB hit its ceiling price of 4,800 VND per share.

Earlier on Aug. 7, the central bank issued its decision to finalise the merger between Habubank and Sai Gon – Hanoi Bank (SHB). Accordingly, Habubank will be merged with SHB and HBB shares will no longer be traded from August 28.

Under the merger proposal that the two banks had previously announced, SHB will have total assets of more than 100 trillion VND (4.7 billion USD) and a charter capital of 9 trillion VND (428.5 million USD).

The stock swap ratio between the banks has yet to be released, but rumours arose that 1 HHB share will be exchanged for 0.75 new SHB share, said Kim Eng Securities Co analysts.

"Updated news around the merger had a positive effect on the market during last trading minutes," said Bao Viet Securities Co analyst Nguyen Xuan Binh.

In addition, the State Securities Commission was said to shorten market's settlement period to T+3 from September 4.

"However, these are not sustainable sources of support for the market," Binh said. "Luckily, stock indices can extend their flat trendline for several sessions before losing ground."

Selling pressure at high prices might lower indices as they reach resistance levels, he added.-VNA

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