Market proves the skeptics wrong

While the government is increasingly tightening its monetary policy to curb inflation, the stock market was believed to slide in the short-term.

The Ho Chi Minh Stock Exchange (HoSE) VN-Index suddenly soared 11.98 points (2.55 per cent) to 482.49 points.

The Hanoi Stock Exchange (HNX), affected by confidence from the HoSE, jumped 4.36 per cent to 92.31 points.

Most stocks advanced on the southern bourse, where 233 stocks advanced and 122 hit the ceiling compared with just 27 dropped and 25 unchanged.

Investors strongly asked for blue-chips, among them Bao Viet Holding (BVH), PetroVietnam Drilling (PVD) and Hoa Phat Group (HPG) topped the most asking ones.

Finance and real estate sectors all advanced, led by Saigon Securities Inc. (SSI), PetroVietnam Finance (PVF) along with Sacomreal (SCR) and PetroVietnam Insurance (PVI).

Especially, securities company shares reversed to strongly rise on the HNX today, after sharply falling on news the major brokerage Kim Long Securities (KLS) was withdrawing from the securities business.

Investors stop bailing out KLS, pushing the share to VND9,800 today, up 5.4 per cent. Au Viet Securities (AVS) hit the ceiling, Bao Viet Securities (BVS) gained 5.6 per cent along with Vietinbank Securities (CTS) up 5.7 per cent.

On the HoSE, investors including also foreigners strongly cashed in, especially in the session end, boosting liquidity to VND976.94 billion ($47.2 million) with the volume hit 46.17 million shares, up nearly 33 per cent and 48 per cent respectively.

Foreigners’ net buying value was VND11.65 billion ($562,000).

The market’s sudden jump raised question among investors. Some said the market had been excessively pressed by continuous bad news previously and it was time for it to bounce back, while some supposing the government’s policies had begun taking effect.