Stocks rallied on June 7 following two days of heavy profit-taking. On the HCM Stock Exchange, the VN-Index closed up 2.3 percent to 443.68 points, while the value of trades jumped 53 percent over the previous session to 642 billion VND (30.6 million USD), on a volume of 31.8 million shares.

Among the 10 leading shares by capitalisation, most made gains between 1 and 4 percent. However, insurer Bao Viet Holdings (BVH), property developer Hoang Anh Gia Lai (HAG) and PetroVietnam Finance (PVF) all rose to their ceiling prices.

Real estate developer Vincom (VIC) hit its floor price.

VIC has announced it would pay a dividend on 2010 profits at a rate of 58.8 percent – an amount that will total a whopping 2.3 trillion VND (109.5 million USD). Yet, according to VIC's first-quarter earnings statements, the company's total liabilities had reached 17.13 trillion VND (815.7 million USD), while equity was a mere 7.5 trillion VND (357.14 million USD).

If it proceeds with the massive dividend payment in July and August, its equity would shrink to about 5 trillion VND (238.1 million USD) and its debt-to-equity ratio soar beyond that of its competitors, increasing the company's risk of insolvency, according to the financial information website

On the Hanoi Stock Exchange, meanwhile, the HNX-Index climbed 3.4 percent on June 7 to close at 76.09 points. The value of trades rose 25.4 percent over June 6's session to 34.4 billion VND (20.7 million USD) on a volume of 38 million shares.

"Circular No 74, which will make some changes to stock trading, from a psychological perspective, made a positive impact after a long depression," said the head of research and corporate finance for Hoa Binh Securities Co, Nguyen Phuc Thinh. "This is the first time the urgent demands of market participants and investors have been considered in a timely manner."

The solutions proposed in a recent Government meeting to appropriately manage the stock market were also good news, reflected in the current recovery, he said.

"There was a fundamental change in market value. I see that it is no longer being dominated by the three large-cap shares, BVH, MSN and VIC," Thinh said. "The stock market in June is unlikely to see strong growth, but it will definitely be better than in May, especially in terms of market volumes."

Foreign investors were net buyers on both national bourses on June 7, but by a net of just 16.9 billion VND (804,760 USD) worth of shares./.