The sooner the SCIC buys in, the better the market will go

Market rebounds on news of SCIC buy-in

(09-03-2008)

HA NOI â?" It was a giddy day on the HCM City Stock Exchange yesterday, as the VN-Index pierced the recent gloom, rebounding 27.12 points to close at 611.17, a gain of 4.75 per cent.

Trading was more active than in Wednesdayâ?Ts session, with Thursdayâ?Ts turnover hitting VND663.94 billion on a volume of 9.7 million shares. Total securities traded, including bonds and fund certificats, hit a record of 28 million.

The record demonstrated a revival in the interest of domestic investors and the power of the Government to influence the market, said Do Hiep Hoa, an analyst with Thang Long Securities Co, pointing to yesterdayâ?Ts announced decision to allow the State Capital Investment Corporation (SCIC) to invest State funds in the stock market.

"The sooner the SCIC buys in, the better the market will go," said Tran Thi Thu Thuy, an analyst with Nam Viet Securities Co.

In yesterdayâ?Ts trading, nearly all codes advanced to the top of the trading band, with only three shares declining, all penny stocks.

Sacombank (STB) retained its place as the most active share, with a volume of 1.6 million shares, and gained 4.97 per cent to end the session yesterday at VND46,500.

Saigon Securities Inc (SSI) was also heavily traded, advancing 4.58 per cent to close at VND80,000, on a volume of over a million shares.

As domestic investors began once again to buy in yesterday, the foreign sector did an about-face and became a net seller to the tune of VND10.53 billion.

Hoa noted, however, that this was a modest figure and represented a normal pattern.

"Foreigners are buying more blue chip shares, which seems more important than how many shares they bought or sold overall," said Hoa

In Ha Noi, the HaSTC-Index also climbed 7.90 per cent to 206.49, led by Asia Commercial Bank (ACB), which rose a whopping 9.68 per cent to close at VND98,6000.

Kim Long Securities(KLS) also hit the ceiling, gaining 10 per cent to end the day at VND34,100.

Turnover on the capital city bourse was VND107.28 billion on a volume of 2.1 million shares. â?" VNS