Market bounces on market news

Bloomberg quoted State Securities Commission’s deputy chairman Nguyen Doan Hung this morning as saying Vietnam would reduce settlement period to two days (T+2) towards the year end, down from three days (T+3).

 As many as 206 stocks rose on Ho Chi Minh Stock Exchange (HoSE), pushing the benchmark VN-Index up 4.95 points or 1.18 per cent to 423.16 points.

Advancers also overwhelmed decliners on Hanoi Stock Exchange (HNX), with 199 stocks up and 50 down. The HNX-Index gained 1.54 points or 2.23 per cent to 70.45 points.

Notably, liquidity jumped on both bourses. Total trading volume reached 44.5 million shares worth VND661.7 billion ($33.9 million) on the southern bourse. The figure soared to 48.6 million shares worth VND696.5 billion ($33.6 million) on HNX.

Low-price speculative stocks massively rallied. Ocean Group (OGC) outperformed the market with 3.5 million shares matched, up 3.82 per cent. Sacom Development and Investment Corp. (SAM) and Tan Tao Investment Industry Corp. (ITA) followed and both hit the ceiling.

Real estate and construction small-cap stocks Vietnam Electricity Construction (VNE), Ninh Van Bay Real Estate (NVT), Sao Mai Construction Corp. (ASM), Hoang Quan Consulting-Trading-Service Real Estate Corp. (HQC) massively hit the ceiling.

Mineral stocks Tay Bac Minerals Investment (KTB), Nari Hamico Minerals (KSS) and Bac Giang Exploitable Mineral (BGM) strongly jumped.

Even some blue-chips like Vinamilk (VNM), PetroVietnam Fertilizers (DPM), Bao Viet Holdings (BVH) saw strong gains.

On the HNX, the flows focused on securities company shares and on PetroVietnam-family shares. Kim Long Securities (KLS), VNDirect Securities (VND), Saigon-Hanoi Securities (SHS), Bao Viet Securities (BVS) all sharply rose more than 6 per cent each. Haiphong Securities (HPC) and Au Viet Securities (AVS) also strongly advanced.

Petro Vietnam Construction (PVX) hit the ceiling with 3.4 million shares matched. Petro Vietnam Power Land (PVL), PetroVietnam Technical Services Corp. (PVS), PetroVietnam-Nghe An Construction (PVA) jumped some 4 per cent each.

Meanwhile, the local economy is still awaiting the government’s measures on supporting growth. The government proved quite positive about macroeconomic outlook in its statements to local press. But statistics still shows struggling situation of the economic, among them HSBC released very low Vietnam Manufacturing PMI Index last week.

Banking stocks saw just small gains in this session. Sacombank (STB) even slightly fell.