Market is still on a roll

More than 106 million shares worth VND1.76 trillion ($85 million) changed hands on the Ho Chi Minh Stock Exchange (HoSE) today, while 121.7 million shares worth VND1.18 trillion ($57.2 million) were traded on Hanoi Stock Exchange (HNX). Total trading value for the first time in this month reached the VND3 trillion ($114.9 million).

HoSE’s VN-Index jumped 6.52 points pr 1.42 per cent to close at 465.26 points, the highest level within past seven months. HNX’s HXN-Index advanced 1.03 points or 1.33 per cent to end at 78.54 points.

State Bank moves to lower ceiling deposit rate to 12 per cent and to relax limitations of real estate loans are fueling speculation among a number of investors that the consumer price index might be low enough for the central bank to shortly reduce rates twice within a month.

Real estate stocks continued in strong demand. Large-cap stocks of the sector like Tan Tao Investment Industry Corp. (ITA), Song Da Urban & Industrial Zone Investment and Development (SJS), Quoc Cuong Gia Lai (QCG) largely hit the ceiling.

Stocks of large real estate enterprises like DIC Investment and Trading (DIC), Khang Dien House Trading and Investment (KDH), Kinhbac City Development Share Holding Corp. (KBC) sharply jumped.

Banking stocks rallied back, with Military Bank (MBB), Vietcombank (VCB), Sacombank (STB) all rose more than 4 per cent each. Vietinbank (CTG) jumped 3.62 per cent and was among top active stocks as well.

The sector also strongly rallied on the HNX, with Asia Commercial Bank (ACB), Habubank (HBB) and Saigon-Hanoi Bank (SHB) all saw big bidding volumes. HBB’s matching volume was huge again with nearly 27 million units matched.

In contrast, State Bank moves still caused fears among analysts.

“Although this rate cut does not change our forecast for single-digit inflation by end-2012, the quickening pace of monetary easing worries us,” said ANZ, saying that the “aggressive monetary easing” might fuel inflation.

Actually, some large-cap stocks fell amidst the market rebound, particularly securities company shares. Leading securities company shares VNDirect Securities (VND), Kim Long Securities (KLS), Bao Viet Securities (BVS) all fell. Sacombank Securities (SBS) and PetroVietnam Finance (PVF) were off as well.