Vietnam Stock Market Experiences High Growth

The price of almost all stocks listed on the Ho Chi Minh Securities Trading Centre (HSTC) rose sharply last week, pushing the VN-Index up by 28.83 points, a jump of 6.96 per cent. Compared with early February, the VN-Index rose 4 points per session on average. The VN-Index has increased over the benchmark of 450 points, showing that the Vietnamese stock market has been undergoing strong development.

 

The transaction volume of the entire stock exchange rose last week by 13.47 per cent, or 1,696,164 stocks per session. The price of 30 stocks grew and 4 others fell. Meanwhile, the transaction volume of the VF1 certificate continued to fall (by about 32.86 per cent) with an average daily transaction of 263,168 units. The price of the investment fund certificates rose again by 8.56 per cent, closing at VND20,300.

 

After remaining unchanged for a long time, the price of Lafooco Company’s stock rose by 4.86 points within last week. In addition, the price of DHA stock (Hoa An joint stock company) increased strongly, by 4.69 points thanks to impressive financial results after the company announced its audited 2005 financial report. The price of Refrigeration Electrical Engineering Corp (REE) stock rose steadily by 4.35 points though REE has not announced its audited financial report yet.

 

The remarkable point last week was the strong increase in prices of OTC stocks. However, many transactions failed due to sellers’ unstable decisions. In particular, two formerly unattractive companies, District 10 Electronic Company (TIE) and Saigon Marine Company (SMC) saw their price rise by about 25 per cent compared with their prices at transaction in late 2005 and now stand at more than 2.5 times of their original value.

 

Stocks of many banks including Eastern Asia Bank, Military Bank, Eximbank and Sacombank are on the rise because many listed stocks closed last week at prices 4 times higher than their par value.

 

Daily transaction of the HSTC 12^th trading week (from Mar 13 to Mar 17)

 

Date	Mar 13	Mar 14	Mar 15	Mar 16	Mar 17
VN-Index change ( per cent)	2.44	1.83	-1.07	1.23	2,39
Transaction volume change ( per cent)	2.51	-6.31	2.04	-5.82	-1.04
Rise/fall (stocks)	30/2	28/4	16/13	24/7	33/1
VF1 price change ( per cent)	1.6	-1.05	-1.6	4.86	4.64