June 16: Vietnam stocks rebound on bargain hunting

Vietnam’s stocks resumed its gaining track as investors picked up shares on good bargains after 3 falling days and on the news that the Ministry of Finance proposed to cut securities trading tax for investors.

The benchmark VN Index gained 3.72 points or 0.84% to 445.17. Volume fell 30.9% to 34.5 million shares traded for VND572.91billion, including 2.9 million shares worth VND62.96 billion changed hands in the put-through deals.

Buyers came back after share prices fell in the past 3 days but they were still in caution mood, leading to lower trading volume.

Market performance today was supported by the news that the Ministry of Finance has proposed to cut tax on securities trading from August 1 to end-2012 as market has plunged and investors suffered losses. The MOF also seeks approval for dividend payment tax free arguing that investors should be treated fairly as depositors.

There was a wide range of CPI forecast. Today the Department Of Price Management under MOF estimated June CPI to rise 0.2-0.25% on month and over 20% on year. Just one day earlier, economist Nguyen Minh Phong of Hanoi Socio-Economic Development Institution’s forecast of June CPI over 2% and 2011 inflation at 17-18%.

Local media reported that negotiable deposit rates have been easing to 16-18.5% p.a. from previous 19.5-20% p.a. for deposit from VND100 million or higher. Banks, including Vietinbank, Maritime bank, are reported to start cutting lending rates for SMEs.

In related news, local gold prices rose to VND37.72 million – VND37.82 million for bid and ask respectively in the afternoon as world gold price climbed, while dollar midpoint price stayed at the record low VND20,618, banks mostly adjusted up dollar offers by between VND15-20 from yesterday’s level.

Back to the market, VN Index opened in the red with 1.2 million shares traded. Caution was the theme in early trade and the market stayed in the negative ground until 10:00. The maintained heat in the HNX inspired investors to buy on HOSE. Hot and active issue SSI became the market leader today and its share prices soon hit the ceiling. The market moved fast and steep in the next 30 minutes and volume rose, though it eased a bit in the ATC session.

Among top 10 market cap, 8 were strong gainers, 1 loser (BVH) and 1 treaded water (VNM). VIC hit the ceiling for a third straight day, and today was the ex-date of cash dividend at VND5,880.

Market breath today turned positive, gainers beat losers by 152-81 and 56 stocks unchanged. As many as 16 stocks fell to the floor while only 30 issues hit the ceiling, 5% each side.

SSI was the most active stock for 9 consecutive day with 2.6 million shares traded, closing up 4.7% , to VND19,900.

STB was the second most active stock with 1.5 million shares traded, closing flat at VND11,900.

PVT was in the third place with 1.4 million shares traded, closing flat at VND5,600.

VSH and LCG followed in the list with 1.2 million shares traded each.

On the Hanoi Stock Exchange, the HNX gained 0.94 point or 1.21% to close at 78.68.

Trading volume rose 22.2% to 58.4 million shares traded for VND720.25 billion of which 3.3 million shares worth VND49.23 billion were changed hands in put-through deals. Higher trading volume on this bourse indicated that traders focused more on pennies and speculative shares.

Market breadth was positive with 147gainers, 119 losers and 69 flat issues. Seven out of top 10 market caps were advancers.

KLS was the most active stock with 7.4 million shares traded, closing up 3.5% to VND11,800 on average.

SCR ranked second in the list with 6.5 million shares traded, closing down 5.5% to VND12,100 on average.

PVX was in the third place with 4.8 million shares traded, closing up 5.5% to VND13,500 on average.

On this smaller cap bourse, the average trading price is taken as the midpoint price of the following trading session where share prices are allowed to move 7% either side. – Stoxplus.com

Tags: vietnam stock, Vietnam stock market, VNindex