Growing market wave breaks

June 19, 2012 | 09:43

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Both bourses ended higher Monday despite rising momentum falling away with a whimper.

The VN-Index of the Ho Chi Minh Stock Exchange (HoSE) ended up 2.5 points or 0.58 per cent to 435.59 points, while the HNX-Index of Hanoi Stock Exchange (HNX) added 0.06 points or 0.08 per cent to 74.9 points.

This session’s rise followed the significant rebound in Friday’s session. The government announcement on Friday morning it would pump VND21 trillion (usd ??) per month into the economy from now until the year end.

Ho Chi Minh City Securities (HSC) saw this new stimulus plan as “a lot more serious than its predecessor in May,” speculating that “The market will likely react positively to this for a couple of days although as ever they will require more details as time goes on.”

In fact, liquidity significantly improved on both bourses. HoSE’s trading value reached VND900 billion ($43.5 million), among them put-through value making up just tiny part. Hanoi’s trading value reached VND493 billion ($23.8 million).

However, the rising momentum faded out at the end of the session. The HoSE had jumped five points in the opening period, while the HNX gained one point.

Several blue-chips ended off at the close. Banking stocks Vietinbank (CTG), Eximbank (EIB) shed, real estate stocks Song Da Urban & Industrial Zone Investment and Development (SJS) were off, while Hoang Anh Gia Lai (HAG) and Quoc Cuong Gia Lai (QGC) ended flat.

The positive trend focused on speculative stocks.

Refrigeration Electrical Engineering Corp. (REE) and Saigon Thuong Tin Commercial Jointstock Bank (STB), which were sold by exchange-traded funds, but both hit the ceiling today with big matching volumes.

Real estate stocks Tan Tao Investment Industry Corp. (ITA) outperformed the bourse with 3.5 million shares matched, followed by Kinh Bac City Development Share Holding Corp. (KBC) at 2.9 million shares matched.

Whereas, the Hanoi bourse saw the large-scale falls of speculative stocks. VNDirect Securities (VND) along with PetroVietnam-family stocks largely ended off. Vietnam Construction and Import-Export (VCG) also strongly dropped on reducing purchasing power from foreigners.