Market bounces on liquidity

June 23, 2012 | 14:45

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Liquidity slightly improved Friday as investors looked to grab deals.

Matching values significantly rose to VND693.1 billion ($33.9 million) on the Ho Chi Minh Stock Exchange (HoSE), also improving to VND356.6 billion ($17.2 million) on Hanoi Stock Exchange (HNX). The value was up some VND100 billion ($4.83 million) on each bourse.

Foreigners also increased their purchasing, focusing on Hoang Anh Gia Lai (HAG), Refrigeration Electrical Engineering Corp. (REE) besides banking stocks. Their net buying volume was of VND87.1 billion ($4.2 million) today.

Transactions particularly rallied at the end of the session, when the market fell to lowest level during the trading day. The market had kept lackluster trend throughout the week on continuing uncertainties about the economic recovery.

Much positive news were released yesterday, including National Assembly’s approval for a number of tax cut like 30 per cent corporate income tax cut in 2012 for SMEs, but all those news still failed to encourage investors’ sentiment.

The VN-Index ended the week at 693.1 points, down 3.97 points or 0.92 per cent against yesterday’s session. The HNX-Index meanwhile shed 0.59 points or 0.8 per cent to close at 73.37 points.

Several blue-chips sunk pushing down the market. Masan Group (MSN) lost 3.85 per cent, Vincom Group (VIC) and Kinh Bac City Development Share Holding Corp. (KBC) both significantly fell while PetroVietnam Finance, Vietcombank (VCB) loosing 1-2 per cent each.

Meanwhile, blue-chips PetroVietnam Drilling and Well Services (PVD), PetroVietnam Gas (GAS) and PetroVietnam Fertilisers (DPM) all ended up.

Speculative stocks in the real estate and mineral sectors fell the most amidst the negative session, as the holders lost the patience lowering offering price.

Binh Thuan Mineral Industry (KSA), Hamico Group Mineral (KSH), Tay Bac Minerals Investment (KTB), Bac Giang Exploitable Mineral (BGM) sharply fell on HoSE, while same-sector stocks on HNX like Hung Long Mineral and Building Material (KHL) were also of the same situation.

Sao Mai Construction Corp. (ASM), Ho Chi Minh City Infrastructure Investment (CII), Cotec investment and Land-House Development (CLG), Ninh Van Bay Real Estate (NVT), Development Investment Construction (DIG) massively hit the floor.