Indices, volumes perk up ahead of holidays

HA NOI – A steady performance overnight by the Dow Jones strengthened domestic investor confidence in local stock exchanges, helping lift the VN-Index for a third day to a close of 458.75 points, an increase of 0.81 per cent.

The volume of trades on the HCM City Stock Exchange remained modest at 46.7 million shares, worth a total of VND1.2 trillion (US$61.5 million).

On the Ha Noi Stock Exchange, the HNX-Index moved back above the 130-point, ending yesterday's session at 131.66, a gain of 2.54 per cent. Value once again reached VND1 trillion ($51.8 million), on a volume of 45.3 million shares.

Phan Anh Tu, the head of the brokerage department at a HCM City-based securities company, attributed this week's rally to the more active participation of institutional investors.

"They are taking advantage of a positive market attitude to push up prices, before catching profits," Tu said, pointing to the high level of volatility during the session as sure sign of increased profit-taking.

"Purchasing power remained strong all along," he added, predicting the uptrend would be confirmed in the coming week. "Concerns of a bull trap have passed. Investors are interested again in securities trading."

Foreign investors also continued as net buyers on both stock exchanges, picking up 1.5 million shares worth a net of VND52.1 billion ($2.6 million).

The latest report by Viet First Securities also noted that a number of listed companies had begun buying back shares, while others had cancelled planned issues of addtional shares, due to the prevailing market gloom.

These moves were seen as a support to the market this month, the report said.

Meanwhile, bank liquidity has begun to improve, following a move by the State Bank of Viet Nam in July to inject capital into the system.

The report said that an uptrend should be confirmed and that investors should keep an eye on business performance before making investment decisions.