Shares on both national stock exchanges rebounded on Dec. 28 as many investors began to hunt bargains.

Most analysts agreed a rally was predictable after several consecutive sessions of decline but what investors cared about now was how long the uptrend could last.

"The supporting factor now is probably only the technical signals which indicate that the two indices fell too hard after several declines," analysts with Vietcombank Securities Co wrote in a market report.

"However, without the support from the improvements in the economic situation, any uptrends are unlikely to be sustained," they said.

The HCM Stock Exchange saw more than 60 per cent of codes posting gains, with the benchmark VN-Index rising 0.82 per cent to finish the session at 350.66 points.

Most of the blue chips gained in value, with Vietinbank (CTG), Vietcombank (VCB), Saigon Securities Inc (SSI) and property developer Hoang Anh Gia Lai (HAG) hitting their daily limit of 5 per cent.

HAG chairman Doan Nguyen Duc registered to buy 5 million HAG shares from December 30 to February 29 – a move considered to take advantage of HAG's cheap share price to increase his holdings in the company.

Of the 10 leading shares by capitalisation, only Sacombank (STB) bottomed out and insurer Bao Viet Holdings (BVH) declined 2.1 percent.

Financial Ocean Group (OGC) rose to be the most active code yesterday with 1.84 million shares changing hands, gaining 4.1 percent to close at 7,600 USD.

Overall the market volume increased slightly to over 57.7 million shares, worth more than 838 billion VND (40 million USD).

On the Hanoi Stock Exchange, the Bank for Investment and Development of Vietnam (BIDV) auctioned nearly 85 million shares in its initial public offering (IPO) with the starting price of 18,500 VND (0.88 USD) per share.

Up to 16,238 investors had registered to buy over 140.8 million shares, surpassing the registered number by 66.2 percent. The IPO results will be announced in the afternoon today.

The HNX-Index also surged 2.56 percent to close at 58.15 points, with gainers outnumbering losers by 171-65.

The value of trades decreased 20 percent, however, totalling 249 billion USD (11.9 million USD) on a volume of 30.5 million shares.

VNDirect Securities Co (VND) continued to be the most heavily traded stock in Hanoi with 2.71 million shares traded, closing unchanged at 6,900 USD.

Foreign investors remained as net sellers in HCM City, unloading 48.2 billion USD (2.3 million USD) worth of shares, but they continued to pick up shares in Hanoi, responsible for a net buy of over 2 billion VND (100,000 USD) worth of shares. /.