State bank decision stabilises markets

Shares advanced on the nation's stock exchanges on Sept. 28 as the
central bank's final decision on Circular No 13 helped settle investor
psychology.

The State Bank of Vietnam's decision, issued late Monday, allows banks
to lend 25 percent of their non-term deposits and count State Treasury
and loans from other credit institutions of terms of three months or
longer as part of their reserves for lending.

The
decision is expected to help ease the capital crunch that banks feared
due to Circular No 13's stricter capital adequacy requirements, which
will take effect on Friday as previously announced.

The central bank on Sept. 28 also decided to keep the prime interest rate at 8 percent for an 11th consecutive month.

On the HCM Stock Exchange, the VN-Index closed up 1.1 percent to
455.13 points. Market value rose by 10 percent over Monday's session to
slightly over 1 trillion VND (53.8 million USD) on a volume of almost 39
million shares.

Advancers outnumbered decliners by
150-57, with Sacombank (STB) the most-active share with over 3 million
changing hands. STB rose for a second day and closed up 1.2 percent to
17,000 VND (0.87 USD) per share.

Of the 10 leading
shares by capitalisation, nine posted gains, with insurer Bao Viet
Holdings (BVH) and property developer Vincom (VIC) rising to their
ceiling price.

Ha Thanh Securities Co's head of
analysis and investment, Tran Van Don, said the impacts of Circular No
13 had dissipated and the market was unlikely to react dramatically.

Many investors remained watchful, Don said, noting the modest increase in trading volume and value on Sept. 28.

He predicted that rising inflation would cause banks difficulties in
lowering interest rates, putting further pressure on the markets.

Duong Hong Ha, chief analyst of Tri Viet Securities Co, agreed the
domestic stock market was unlikely to see any explosive development in
light of rising inflation, high interest rates and a large volume of new
shares to list by year's end.

On the Hanoi Stock
Exchange, the HNX-Index advanced on Sept. 28 by a modest 0.18 percent to
close at 130.17 points. Volume hit 34.6 million shares worth 981.6
billion VND (50.3 million USD) – an increase by 39.5 percent in volume
and nearly 60 percent in value – while gainers outnumbered losers by
203-72. /.

Related Articles

• Vietnam to relax bank lending rules to boost loans
• Central bank eases credit rules
• Banks scramble for mid-level managers
• Vietnam secure 2-1 win over Malaysia in Eximbank Cup
• Greenback firmer on signs of rising demand

Shares stall on inflation data

The nation's two stock exchanges opened down on Tuesday on news late Monday that the nation's inflation rate had heated up in September, with one-month increase in consumer prices in both Hanoi and Ho Chi Minh City of nearly 1 percent.

On the HCM Stock Exchange, the VN-Index closed down by nearly 1 percent to 453.32, although the value of trades rose by 16 percent to VND1.7 trillion (US$87.2 million), on a volume of nearly 57.2 million shares.

Of the 10 leading shares by capitalization, only Bao Viet Holdings (BVH) and Masan Group (MSN) saw gains on the day. Overall, losers outnumbered gainers on the HCMC market by 142-56.

Ocean Group (OGC) surprised for the second day as the most-active share, generating a record volume of over 14.3 million shares – about 26 percent of overall market volume. But the shares, after declining early in the session, soared to their ceiling price by the end of the session, closing at VND37,600 ($1.93).

On the Hanoi Stock Exchange on Tuesday, the HNX-Index slid 1.31 percent to end the session at 131.57 points. The volume of trades dropped 23 percent to about 40.4 million shares, worth just over VND1 trillion ($51.3 million).

Declines outnumbered advancers by five-to-one, while seven of the 10 leading shares by capitalization declined.

PetroVietnam Construction (PVX) remained the most heavily-traded share on the northern bourse, with 5 million traded. PVX closed down 2 percent to VND24,300 ($1.25) per share.

Foreign investors were net buyers by value on the HCMC market on the same day of VND13.2 billion ($676,900) worth of shares, while they were net sellers in Hanoi of shares worth VND1.65 billion ($84,600).

Related Articles

• US Fed 'prepared' to act if recovery stalls
• Market moves up sharply
• New decree hopes to protect holders of convertible bonds
• Nation must ‘ensure balanced development'
• Market retreats on CPI concerns

Shares stall on inflation data

The nation's two stock exchanges opened down on Sept.21 on news late
Sept.20 that the nation's inflation rate had heated up in September,
with one-month increase in consumer prices in both Hanoi and HCM City of
nearly 1 percent.

On the HCM Stock Exchange, the VN-Index
closed down by nearly 1 percent to 453.32, although the value of trades
rose by 16 percent to 1.7 trillion VND (87.2 million USD), on a volume
of nearly 57.2 million shares.

Of the 10 leading shares by
capitalisation, only Bao Viet Holdings (BVH) and Masan Group (MSN) saw
gains on the day. Overall, losers outnumbered gainers on the HCM
City market by 142-56.

Ocean Group (OGC) surprised for
the second day as the most-active share, generating a record volume of
over 14.3 million shares – about 26 percent of overall market volume.
But the shares, after declining early in the session, soared to their
ceiling price by the end of the session, closing at 37,600 VND (1.93
USD).

On the Hanoi Stock Exchange on Sept. 21, the
HNX-Index slid 1.31 percent to end the session at 131.57 points. The
volume of trades dropped 23 percent to about 40.4 million shares, worth
just over 1 trillion VND (51.3 million USD).

Declines outnumbered advancers by five-to-one, while seven of the 10 leading shares by capitalisation declined.

PetroVietnam Construction (PVX) remained the most heavily-traded share
on the northern bourse, with 5 million traded. PVX closed down 2 percent
to 24,300 VND (1.25 USD) per share.

Foreign
investors were net buyers by value on the HCM City market on Sept.
21 of 13.2 billion VND (676,900 USD) worth of shares, while they were
net sellers in Hanoi of shares worth 1.65 billion VND (84,600 USD)./.

Related Articles

• Shares stall on inflation data
• Market moves up sharply
• New decree hopes to protect holders of convertible bonds
• Nation must ‘ensure balanced development'
• Market retreats on CPI concerns