Market erupts in positive fashion

The VN-Index of Ho Chi Minh Stock Exchange (HoSE) rose 17.61 points, or 4.01 per cent, to close at 457.21 points. The benchmark even reached the gain of 20 points – the maximum allowed level – during the session.

The HNX-Index of Hanoi Stock Exchange (HNX) saw a dramatic gain of 4.06 points or 5.66 per cent, closing at 75.78 points.

The prime minister issued three new regulations on developing the stock market late last week, among them the Directive 08 which requiring developing the stock market to become a major fund raising channel.

“Although Directive No.8 still seems quite vague in general, the government has at least acknowledged the importance of the stock market as a channel for raising long-term capital,” said Saigon Securities Inc. (SSI) in its note to clients last Friday.
Bidding for shares at ceiling prices were largely ordered since the open of the session.

Almost all blue-chips hit the ceiling, among them Bao Viet Holdings (BVH), Vinamilk (VNM), Vincom Corp. (VIC), Eximbank (EIB), Military Bank (MBB), Vietinbank (STG). VN30 soared 21.4 points, or 4.25 per cent, to 524.94 points.

Just a tiny number of 14 stocks declined today and five ended flat. The remaining 287 stocks advanced, among them 249 hitting the ceiling.

Demand for shares still strongly accelerated on the HoSE, despite an increase in selling pressure. Liquidity hit 103.3 million shares, worth VND1.98 trillion ($95.7 million). Eximbank (EIB) outperformed the bourse with 8.1 million shares matched, followed by Ocean Group (OGC), Vietinbank (CTG) and Sacombank (STB).

Put-through volume reached high at 37.8 million shares worth VND802 billion ($38.7 million), focusing on Military Bank (MBB), Eximbank (EIB) and Hoang Anh Gia Lai (HAG).

Banking shares continued heating. All nine banking stocks hit the ceiling today, among them only one CTG saw offering orders remaining at the session’s close.

But trading value strongly dropped on the HNX, with investors strongly selling out today. Liquidity reached 40 million shares worth VND479.3 billion ($23.2 million).