The VN Index resumed its climb last week, closing last Friday at 573.79, up more than 60 points from two weeks ago.

Last week's five trading days represented almost 43 points.

The index reached a record height at 638.86 on April 25, then fluctuated and fell to 388.82 on August 2.

It then went up and down, closing at 521.38 on the first day of the month.

These were different from the previous rises, which had been driven by price increases for most of the listed companies.

Last week saw only 29 out of 54 companies on the board of the HCM City Securities Trading Centre strengthen. Another 21 suffered losses while the remaining four stayed put.

However, increases by big firms including Vinamilk, Sacombank, SACOM, REE, Gemadept, Vinh Son-Song Hinh and the newly listed Itaco, helped push up the index.

Gemadept, one of the hottest shares, jumped almost 15%, from VND107,000 to VND123,000 last week.

SACOM was the biggest winner, increasing 17.44% to reach VND101,000.

The VND450bil industrial park company Itaco enjoyed a 9.26% rise in its three first trading days at the centre and closed the week at VND59,000.

Losses ranged from 6.32%, for Chang Yih Co, and 0.28% for Bibica.

Stronger participation of foreign investors contributed to the growth, helping boost demand from domestic investors as well.

Last week's trade volume stood at more than 38.8mil securities. This total amount included 17.6mil securities of 54 listed companies and 4.6mil certificates of the investment fund VF1. Bonds accounted for the remaining 16.6mil securities.

The total volume showed a big leap from the week of November 6-11 when 22.5mil securities were traded. Of these, nine million were shares.

Between November 13 and 17, foreign investors placed VND895bil (US$56mil) to acquire almost 13mil securities.

Of the figure, 5.8mil were shares acquired via placing orders (over 38% of the total shares traded by order matching), and another 1.5mil shares via negotiations.

The foreign investor portfolios covered most of the companies on the board and the fund VF1 (almost 2.3mil units).

Their most favourable companies were the bluechips Vinh Son-Song Hinh, (over 1.8mil equities), then Vinamilk, Gemadept and SACOM.

Vinh Son-Song Hinh was also the company of highest liquidity in the exchange with over three million stocks changing hands.

Vinamilk followed with 2.06mil stocks, then came CII with 1.7mil and Sacombank with over 1.6mil shares transferred.

WTO boost

Vietnam joining the WTO will help the economy in general and the stock market in particular.

Horst Geicke, chairman of VinaCapital, which manages two investment funds worth $800mil in Vietnam (with $300mil raised last week) cited the country's status as WTO member as one of the driving forces for increased investment.

"It's an excellent time for anyone to invest in Vietnam," he told Viet Nam News.

The size of the exchange is expected to increase significantly with around 20 companies licensed recently by the State Securities Commission and another 30 expected by the year's end.

The market capitalisation is now at around $4bil and the figure is hoped to double by the year's end.

Dominic Scriven, director of Dragon Capital, believes when the market has hundreds of companies it will become attractive to foreign investment institutions.

Earlier this month Utsunomiya, the director of The Million Millionaires Project Company (TMMP), a Japanese stock market consultant institution, accompanied 11 individual Japanese investors to HCM City Securities Corporation (HSC) to open a trading account.

He anticipated that the available funds ready for pouring into Vietnam's stock market could soar up to $500mil as Japanese investors were very interested in this stock market.

Meanwhile, Bryan Byungho Park, the managing director for the investment banking division of Korea's Woori Investment and Securities, said last week his company wanted to invest US$200mil in Vietnam's stock market, both officially and over-the-counter.

Procedures for opening a trading account were underway, and the company's customers will also be investing, he said.

Tong Yang Investment Bank, also of Korea, is expected to open a rep office this week in HCM City as a first step to expand its operations in Vietnam.

The Securities Law that take effect early next year will help create a transparent market and also serve as a positive development that will attract more investors.