Market moves up sharply

Investors watch stock prices at Orient Securities Co. The VN-Index jumped　12.03 points, or 2.66%, against a session earlier to 464.76 on Monday - Photo: Le Toan

The market opened higher and then climbed steadily throughout the second matching phase before closing at the high for the second consecutive phase.

On the southern bourse, investors bid for 79.7 million shares, a 3% increase, while they offered 50.9 million shares, decreasing by 19.8% from the previous session. Liquidity stayed low with the total trading volume of 42.9 million shares worth VND1.2 trillion, decreasing by 6.5% and 4% against the previous session respectively.

Up to 243 stocks gained ground on Monday while only seven stocks fell. There were 120 stocks closing at the ceiling prices and three others plunging to the floor. Many sectors were stronger and most small and medium caps hit the ceiling prices.

Saigon Securities Co. (SSI) was the most traded stock that ended the day up 4.9% at VND29,700 per share with 1.69 million shares traded. Refrigeration Electrical Engineering Corp. (REE) followed, rising 4.8% to VND17,400 with volume of 1.1 million shares.

Foreign investors, meanwhile, were less active as they acquired 1.6 million shares worth VND60 billion and sold 1.7 million shares worth VND52 billion. They accounted for around 4.7% and 4% of the market’s buying and selling value respectively.

Fiachra Mac Cana, managing director of HCMC Securities Corp., said the markets gained clear ground on Monday as investors took a more optimistic line following sharp falls last week. Volumes, albeit lower than Friday’s levels, were decent for a Monday and certainly high enough to imply an improvement in investor sentiment. Market breadth widened considerably although foreign participation levels were very low.

“The banking story will continue to dominate the markets this week... Visibility is quite low at the moment and we have not heard anything solid enough yet that would drive the market straight back up above 480 points on the VN-Index,” Mac Cana said.

“At the same time, investors will recall last year’s depreciation that involved a very abrupt shift in official policy.  So on Tuesday’s gains may be followed up further on Wednesday but after that the going is likely to get tougher as we await the next move from the central bank.”

The Hanoi market added to Friday’s gains but in slightly lower turnover of VND835 billion. The HNX-Index jumped 5.24 points, or 3.81% and ended the day at 140.11.

There were 303 stocks advancing and 12 others falling, with 60 stocks shooting up to the ceiling prices and two others dropping to the floor prices. Foreigners were@net sellers and accounted for 0.53% and 0.68% of the market’s buying and selling value respectively.