Blue chips buoy market indices

January 26, 2013 | 08:53

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Gains of blue chips on January 24 helped sustain a market rise on the HCM Stock Exchange, with the VN-Index climbing over 2 per cent to close at 452.40 points.

Many large caps hit their ceiling prices by the end of the session, including leading shares such as insurer Bao Viet Holding (BVH) and PetroVietnam Finance (PVF) and steelmakers Hoa Phat Group (HPG) and Hoa Sen Group (HSG).

None of the top 30 shares by market capitalisation and liquidity declined, lifting the VN30 by 1.95 percent to stand at 532.11 points.

“Current valuations are low relative to earning prospects” analysts of FPT Securities Co wrote in a report, saying economic data was positive in the first month of this year, which raised hopes that corporate performance would improve.

However, according to analyst of Bao Viet Securities Co Tran Thi Hai Yen supporting factors for the recent rally such as strong foreign buying and economic data are now weakening in comparison with the previous few weeks.

Trading was still modest on January 24, totalling almost 50 million shares worth 683.66 billion VND ($32.7 billion). Tan Tao Investment Industry Corp (ITA) continued to lead the market with 3.3 million shares changing hands, rising 4.7 percent to 6.700 VND a share.

On the Hanoi Stock Exchange, the HNX-Index also gained 2.69 percent to finish the day’s session at 61.17 points.

More than 62 million shares worth nearly 430 billion VND ($20.6 million), were traded, with Sai Gon-Hanoi Bank (SHB) and property developer Sacomreal (SCR) being the most active codes on the bourse.

Foreign investors concluded the day as net buyers on both exchanges, picking up combined shares worth 74.7 billion VND ($3.6 million)