Vietnam's Stock Market: Near to Supply-Demand Balance

After a four-day national holiday on the occasion of National Reunification (April 30) and May Day, the Vietnamese stock exchange resumed operations on May 3 with more positive transaction signals. Investors had known business results in the first quarter of 2006 and took these as grounds for their transaction decisions. Hence, massive buy-ins and sell-outs were less frequent. The supply-demand balance was near to equilibrium when there were 2,390 orders placed for buying 3.88 million stocks and fund certificates and there were 2,204 orders for selling 3.73 million stocks and fund certificates.

 

At the May 3 closing transaction session, 23 stocks increased prices, including 13 reaching the ceiling, and 10 stocks reduced prices, including eight hitting the floor. The price rise of three backbone stocks VNM, REE, SAM and KDC, and the stability of GMD helped VN-Index up 16.63 points to 612.11 at the closing session. Although the order-matching volume on May 3 was lower than in previous record sessions, the Vietnamese stock market remained active with transactions of 2.12 million stocks (down 28 per cent) and 200,000 fund certificates (down 83 per cent) totally valued VND147 billion (US$9.89 million), down more than VND100 billion (US$6.25 million) compared with the record session’s value of VND250 billion (US$15.63 million).

 

Firms with positive business results in the first quarter of 2006 had their share price rise (REE, VNM and SAM). The combined ceiling price order-matching volume of these three stocks was 500,0000 while the total ceiling price purchase surplus was nearly 270,000 stocks valued VND13.6 billion (US$850,000).

 

On the contrary, firms with bad business results suffered the share price fall. Of the total 10 falling stocks, eight of them, including BBT, DPC, LAF, PMS, PNC, SGH, TNA and TRI, hit the floor price. The aggregate floor price order-matching volume of these eight stocks was 280,0000 while the total floor price purchase surplus was nearly 90,000 stocks valued VND30 billion (US$1.88 million). 

 

Notably, foreign investors sold 159,920 stocks and fund certificates worth VND12.1 billion (US$756,250) while paying VND3.4 billion (US$212,500) to buy 68,270 stocks and fund certificates. The most wanted codes include REE (59,400 stocks), BBC (56,080 stocks), VTC (15,370 stocks), VNM (9,900 stocks) and TMS (7,140 stocks). The BTC share had the highest P/E rate at 148.4 (calculated on April 28, 2006) but suddenly in great demand by foreign investors who bought 19,800 BTC stocks on May 3. Presently, foreign investors are holding 17.28 per cent of BTC, or more than 200,000 stocks. Other codes with high buy-in volumes included PNC (14,570 stocks), SGH (13,100 stocks) and REE (7,700 stocks).

 

Three stock arrangements were made: foreign investors sold 12,560 BTC stocks for domestic investors at a price of 26,600 each while the latter sold 19,900 BBC stocks (priced 49,000 each) and 10,000 LAF (priced 34,000 each). The market had additional seven bonds transacted with 2.37 million units valued over VND406 billion (US$25.38 million) in three transacting sessions.

 

	VN Index		612.11+16.63+2.79%
	Stock transaction volume		2,165,910
	Stock transaction value		140.246 billion
	Bond transaction volume		2,366,210
	Bond transaction value		257.521 billion
	Fund certificate transaction volume		200,580
	Fund certificate transaction value		8.725 billion
	Aggregated transaction value
Stocks with the highest price rise
Stock codes		Opening price	Matching price	Volume	Change	Per cent
HAS		67	70	25,550	+3,000	4.48
VTC		69	72	6,620	+3,000	4.35
SAV		57	59.5	65,830	+2,500	4.39
TS4		58.5	61	20,620	+2,500	4.27
SGH		46.1	48.4	9,240	+2,300	4.99

 

 

Stocks with deepest price fall
Stock codes	Opening price	Matching price	Volume	Change	%
SSC	73.5	70	23,020	-3,500	-4.76
REE	101	98	308,840	-3,000	-2.97
SAM	100	97.5	96,270	-2,500	-2.5
PMS	45.6	43.4	57,830	-2,200	-4.82
NKD	98	96	11,030	-2,000	-2.04