VTNews :: Market loses steam as investors book profits

Market loses steam as investors book profits

Vietnam’s major stock market in Ho Chi Minh City slid Friday as investors took profit from several days of rises.

The VN-Index lost 11.9 points, or 2.13 percent, to close at 546.66.

Heavy selling crept in soon after the opening bell and trading volume reached more than 20 million shares worth VND813 billion (US$49.3 million).

Of the index’s members, 79 advanced and 76 declined.

“Stocks declined today because the positive news that boosted the market recently is beginning to wear off, with many investors starting to sell shares to get some profit after the market rally,” Bloomberg quoted Hoang Thach Lan, chief analyst of HCMC-based SME Securities, as saying.

“However, the adjustment won’t last long and the VN-Index may climb to 650 points in the next few months, since the macroeconomic situation is still backing up confidence in the market.”

The VN-Index in the first half of this year lost 61 percent of its value to hit a low on June 20.

Since then, the stock exchange market has pared back its year-to-date loss to 41 percent.

A chief broker in downtown HCMC Friday warned there will be a huge amount of additional shares in large caps listed on the exchange in the near future, triggering concerns about another stock market retreat.

The Ho Chi Minh Stock Exchange has given Sacombank the green light to issue more than 66 million new shares, steel maker Hoa Phat Group to list 56 million additional shares and bakery North Kinh Do to issue 2.6 million shares.

STOCK BRIEFS

Vinaconex lists 150 million shares in Hanoi

Vietnam Construction & Import-Export Joint Stock Co., two-thirds owned by the government, listed on the Hanoi Securities Trading Center Friday.

The Hanoi-based company, known as Vinaconex, started trading almost 150 million shares on the smaller of Vietnam’s two exchanges, pushing the number of companies on the bourse to 148.

The stock closed at VND39,600, valuing Vinaconex at VND5.94 trillion (US$358 million).

“Listing at this time is good because of a rebound in the stock market,’’ Nguyen Quoc Hoa, the company’s chief accountant, said in an interview Friday in Hanoi.

“It’s a more favorable environment for us to attract investors, so we can mobilize capital more easily.’’

The government sold a stake in Vinaconex in November 2006, raising VND1.1 trillion ($65.4 million).

Source: Bloomberg

Vietnam Development Bank to auction VND800 bln worth of bonds

Vietnam Development Bank will sell VND800 billion (US$47.6 million) worth of bonds next week, according to a statement from the Hanoi Securities Trading Center, where the auction will take place.

The state-owned bank, which raises capital for government projects, will auction VND400 billion ($23.8 million) worth of 15-year bonds and VND400 billion worth of 10-year notes on September 11, according to a statement.

The Hanoi-based lender last month raised VND217 billion ($12.9 million) by selling debt, less than the planned VND600 billion ($35.7 million), the securities trading center said in a statement on its website.

The notes, which will mature in 10 and 15 years, were sold with a coupon of 15 percent, the statement said.

Vietnam Development Bank plans to sell VND23 trillion ($1.37 billion) worth of bonds this year, compared with VND24.1 trillion ($1.43 billion) last year, it said in March.

Source: Bloomberg

Reported by Hoang Uy

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