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Stocks hit roof of trading bands, helping to prop up VN-Index   2008-10-30 - Viet Nam News

Domestic stock indices turned around yesterday as the majority of stocks rebounded to hit the ceiling of the regulated trading bands on both the Ha Noi and HCM City markets.

"With the economy growing at nearly 7 per cent and domestic consumption demands remaining significant, companies still have a good consumer market".

Purchases far exceeded sales, pushing the HASTC-Index of the Ha Noi market up 2.39 points, or 2.28 per cent, to close at 107.44. About 10.75 million shares changed hands for a total revenue of VND275.62 billion (US$16.7 million).

The Ha Noi Securities Trading Centre saw 139 gainers and 11 losers yesterday. Kim Long Securities (KLS) and Asia Commercial Bank (ACB), with around 1.3 million shares traded each, were the most active on the northern market.

The HCM City Stock Exchange's VN-Index increased 8.82 points, or 2.73 per cent, to close at 331.62. Liquidity continued to improve, as trading volume rose by 29 per cent to 22.12 million shares, with a total turnover of more than VND700 billion ($42.4 million). The market saw 132 winners by the end of the day. As many as 21 codes lost and 11 stayed unchanged.

Major stocks saw the most action yesterday. Sacombank (STB) led the market with orders of 2.38 million shares, followed by Saigon Securities Inc (SSI), Phu My Fertilisers (DPM) and Hoa Phat Group (HPG), with around 1.2 million shares traded each.

"As far as I see, many investors are still buying in," said Nguyen Thanh Binh, an investor at APEC Securities. "The world economy is likely to face a lot of difficulties for a long time, but share prices have declined deeply so far."

"Maybe a significant part of the difficulties have been reflected in the current share prices," he said.

"Massive rallies on the world stock market yesterday and today also stimulated investors to buy in with the expectation of a market rebound in the short term," Binh added.

Rate cut hopes

Most Asian markets rose yesterday on hopes that the Bank of Japan and the Federal Reserve would cut interest rates this week in a bid to boost economic growth.

Nguyen Thanh Ky, general secretary of the Viet Nam Association of Securities Businesses (VASB), said the world's efforts to prop up the financial markets, in addition to positive signs in the domestic economy, were facilitating the VN-Index's rebound.

Viet Nam has attracted $58.3 billion in foreign direct investment (FDI) in the last 10 months, a six-fold increase over the same period last year, announced the Ministry of Planning and Investment.

The consumer price index (CPI) for this month dropped 0.19 per cent from that of September, according to the General Statistics Office (GSO). October's CPI was previously forecast to increase 0.18 per cent like it did in September.

Ky said these factors helped improve investors' confidence, which would help prevent the VN-Index from plummeting further.

Meanwhile, foreign investors' net sales value yesterday expanded to nearly VND130 billion ($7.87 million) from Tuesday's VND90.65 billion ($5.5 million), with 1.2 million shares bought and 3.76 million units sold.

Experts earlier this week said that foreigners' net sales had played a significant part in pushing the local exchange down in recent weeks, raising fears that overseas clients would flee the market.

"The local stock market increases or declines. This depends on [the country's] inner conditions," said Bui Van Quang, deputy general director SME Securities. "I'm still confident in our economic growth".

"With the economy growing at nearly 7 per cent and domestic consumption demands remaining significant, companies still have a good consumer market," he said.

"If listed companies deal well with their core businesses and maintain transparency in business management and finance, their shares will continue to lure investors," Quang said. "This will support the stock market".

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