News Room - Business/Economics

Posted on 25 Sep 2008

Trade volume reaches record high (Vietnam)

 

Liquidity improved sharply yesterday, a day after September’s consumer price index (CPI) dropped to its lowest monthly level since the beginning of the year.

 

The General Statistics Office on Monday announced a small 0.18 per cent rise in September’s inflation – a low rate attributed to sharp decreases in the prices of rice and oil.

 

Trading volume hit a record high of 39.6 million shares and fund certificates yesterday, while total revenue reached about VND1.41 trillion (US$85.45 million), up 210 per cent on Monday’s figure.

 

Big sales pushed the VN-Index down 4.24 points at the beginning of the day, but purchases in major stocks increasing strongly after mid-day, which helped the index maintain its upward trend.

 

The VN-Index closed at 465.87 after increasing 6.01 points, or 1.31 per cent.

 

Sacombank (STB) led the market in terms of trading volume with orders for 4.78 million shares matched, followed by Hoa Phat Group (HPG) with 2.55 million.

 

Among the most active stocks were Phu My Fertilisers (DPM) and Cables and Telecom Materials (SAM) with about 2 million shares traded each, and Saigon Securities Inc (SSI) with 1.8 million shares traded.

 

Foreign investors were busy yesterday, buying up to 8.65 million shares and unloading 3.15 million units. Net purchase value reached VND278.77 billion ($16.9 million).

 

Foreign investors have been net sellers this month with a net sales value of around VND444 billion ($26.9 million), according to HCM City Stock Exchange’s statistics. September saw a serious decline in global stock markets, fuelled by the US financial crisis.

 

"Positive signs from the macro-level economic environment, particularly CPI expansion, were reflected in market moves today," said Nguyen Hong Nam, SSI deputy general director.

 

Nam said the VN-Index saw both ups and downs on the day creating chances for buyers to get desired stocks and for sellers to cash in on profits. As a result, trading volume increased sharply, he said.

 

John Nolan from a HCM City fund management company said on Monday that investor panic in the world’s largest economy, the US, had temporarily eased thanks to urgent Government intervention. The US Government’s $700-billion bailout of the financial market boosted securities trading around the world.

 

However, Asian stocks fell yesterday on doubts about how Washington’s $700 billion bailout plan would restore confidence in the US financial system when the economy is facing a recession, Reuters said in a report yesterday.

 

On the Ha Noi Securities Trading Centre, the HASTC-Index closed at 152.62 after gaining 2.18 points or 1.45 per cent on the day. About 19.95 million shares changed hands for a total turnover of around VND685 billion ($41.5 million).

 

Major stocks showed the most action on the northern market, including Asia Commercial Bank (ACB) with 2.5 million shares traded, Kim Long Securities (KLS) with 2.1 million; Vinaconex (VCG) with 1.58 million and Petroleum Technical Services Corp (PVS) with 1.25 million.