Stock Market: Good Impacts from WTO Entry

On the second trading day of the week, November 7, the stock market saw the first positive effects from the official WTO entry of Vietnam as the 150^th member of this organisation. Hopeful of a faster-growing stock market in the integration process, foreign investors rushed to buyers favourite shares. Foreign investors spent up to VND40 billion (US$2.5 million), a 3.3 fold higher than the value in the previous trading session, to buy in 710,460 shares and fund certificates, raising the successful trading proportion of the entire market from 15-20 per cent to 35 per cent.

 

The strong demand of foreign investors raised the prices, the trading volumes and the trading values of blue-chip stocks. GMD stock had the highest price rise of VND3,500 raising its market price to VND95,500 each, followed by DHA with an increase of VND3,000 to close at VND72,000 each. The rising trading volume of blue-chip stocks lifted up the entire market trading volume by 64 per cent with 1.73 stocks changed hands. The fund certificate trading volume remains at high level with 322,990 units changed hands (-24 per cent). On November 7, the trading volume reached VND113 billion (US$7.06 million), an increase of VND43 billion.

 

The November 8 trading day followed up a positive trading day with more investment in blue-chip stocks. Foreign investors believed in prosperous businesses of listed firms after the WTO entry. They spent VND66 billion (US$4.1 million) in this trading day, higher than the trading value of VND43 billion (US$2.7 million) on November 6.

 

The strong demand from foreign investors lifted up the VN-Index after period of “parallel progress.” The VN-Index gained 5.96 points to close at 526. Most biggie stocks increased in price, like GMD (+ VND4,500 to close at VND100,000), AGF and BMP (+ VND3,500), KDC (+ VND2,000), TMS, CII, DHA, REE and VNM (+ VND1,000-1,500), BBC, BT6, SAM and VSH (+ VND500-900).

The high purchasing power of foreign investors significantly augmented the trading volume and value of the market on November 7 and 8. The order-matching volume of 52 listed shares increased from VND59 billion to VND123 billion. The VF1 certificate fund trading remains at a high level with 300,000-450,000 units changed hands each session. The trading value is about VND10 billion.

 

The trading situation on November 9 is as follows:

 

5 stock with highest price rise
Stock code	Opening Price	Order-matching price	Volume	Change	per cent
GMD	95.5	100	177,480	+4,500	4.71 per cent
AGF	82	85.5	81,740	+3,500	4.27 per cent
BMP	83.5	87	128,490	+3,500	4.19 per cent
KDC	88	90	63,200	+2,000	2.27 per cent
SGH	39.5	41.4	4,630	+1,900	4.81 per cent

 

 

5 stocks with deepest price fall
Stock code	Opening Price	Order-matching price	Volume	Change	per cent
NHC	39	38.2	860	-800	-2.05 per cent
BPC	25.3	24.7	2100	-600	-2.37 per cent
HAP	38.5	38	31870	-500	-1.3 per cent
SSC	70.5	70	4730	-500	-0.71 per cent
TRI	29.2	28.8	3410	-400	-1.37 per cent

 

 

5 stocks with largest trading volume
Stock code	Opening Price	Order-matching price	Volume	Change	per cent
VFMVF1	24.8	25.2	406,130	400	1.61 per cent
GMD	95.5	100	177,480	4,500	4.71 per cent
VSH	36.5	37	154,890	500	1.37 per cent
STB	61	61	150,920	0	0 per cent
VNM	81	82	147,980	1,000	1.23 per cent

Source: Vietcombank Securities (VCBS)