HCMC’s VN-Index gained by 3.85 percent, or 36.43 points – the highest rise since mid-March – to close at 983.62, and the Hanoi HASTC-Index also edged up by 7.78 points to close at 327.15.

There were 82 gainers and only 9 losers out of the 107 stocks listed in HCMC.

The bourse closed with 4.9 million shares traded for VND 651 billion (US$41 million), a jump of 81 percent 72 percent in trading volume and turnover respectively.

Up to 30 out of the gainer list hit the ceiling price of 5 percent, including many blue chips like PPC, FPT, VHS, PVD, REE, CII and KDC.

REE took the lead in the market in terms of trading value with 445,580 shares traded for VND108 billion.

Analysis attributed the bullish sentiments on both exchanges to recently released positive business reports of listed firms for the first quarter.

Additionally, positive comments on Vietnam bourse by Lord Mayor of London, Alderman John Stuttard on a recent trip to Hanoi, saying the stock exchanges had been actively developing.

A slowing in the real estate and gold markets was another factor that sent investors back to the stock exchange to do business.

Mutual funds PRUBF1 and VFMVF1 increased by 2.96 percent and 4.89 percent respectively to close at VND13,900 and VND32,200.

Foreign investors were net buyers again, investing VND226 billion in 1.6 million shares with keen interest in blue chips like VNM. CII, KDC, VSH and FPT.

Hanoi also experienced a busy session with 1.24 million shares changing hands for VND148 billion, increasing 74 percent and 92 percent respectively over the weekend.

Fund revokes discount price

VietFund Management Co., running the listed mutual fund VFMVF1 last Friday revoked a decision made two days earlier to reduce the price for a plan to mobilize VND500 billion in a new share issue this year due to strong opposition from investors.

Last Wednesday, the fund manager announced a cut in the new issue price from VND33,164, which was set March 26, to VND27,300 to ensure its successful sales in light of the recent market slump.

The decision prompted an outcry from those who had already invested, as they would suffer losses at the lower price.

In trading late last week, up to four million fund units failed to find buyers at the floor price of VND30,700. By Friday evening the fund manager decided to keep the originally set price of VND33,164.

Interviewed by Thanh Nien newspaper, fund manager Tran Thanh Tan said it was difficult to make those decisions. In fact, many investors suggested VFM reduce the price to increase chances for their participation, and the decision got the nod from the director board and relevant authorities.

VFMVF1 shares are now held by about 7,500 investors. After the new issue, the fund will increase to VND1 trillion.

Source: Thanh Nien