Vietnam - European debt deal boosts bourses

by lexie Sat Oct 29, 2011 12:51 pm

Updated October, 29 2011 10:05:00

European debt deal boosts bourses

HA NOI — Stocks tracked global markets, rebounding on news that European leaders have finally agreed to expand their bailout fund to staunch the region's debt crisis.

"No matter how effective this rescue plan is, the rescue deal for Greece will help prevent the European sovereign crisis from spreading across other regions of the world," said Le Huu Quan, an analyst for a Ha Noi-based financial company.

Also helping ease the fears of a new recession was data showing that the US economy grew at a stronger pace in the third quarter.

Meanwhile, Minister of Finance Vuong Dinh Hue yesterday reaffirmed that Vietnamese public debt was a safe level. Debt would reach 54.6 per cent of gross domestic product (GDP) by the end of this year and could reach as high as 58.4 per cent next year, Hue said, but he emphasised that 75 per cent of the debt was official development assistance with low interest rates and long repayment periods.

On the HCM Stock Exchange yesterday, the VN-Index extended Thursday's rally by 1.76 per cent to reach 422.07 points. Gainers outnumbered losers by 203-38, with nearly 90 stocks hitting their ceiling prices. The value of trades doubled the previous day's level, totalling VND700.4 billion (US$33.4 million) on a volume of 41.4 million shares.

Of the 10 leading shares by capitalisation, insurer Bao Viet Holdings (BVH), PetroVietnam Finance (PVF) and real estate developer Hoang Anh Gia Lai (HAG) all hit their ceiling prices. Four other codes in this group also posted gains on the day.

Real estate developer Hoang Quan (HQC) was the most-active share, with over 2.5 million traded, closely followed by Refrigeration & Electrical Engineering (REE), with 1.8 million shares changing hands.

On the Ha Noi Stock Exchange, the HNX-Index rose by 3.2 per cent, ending the session at 69.94, with a majority of stocks posting gains. The value of trades jumped to VND504.9 billion ($24 million) while volume totalled 50.8 million shares.

Kim Long Securities Co (KLS) was the most-active share nationwide with 4.73 million changing hands. Financial and construction shares, as well as PetroVietnam subsidiaries on the northern bourse, all attracted speculators and rallied strongly.

Foreign investors concluded the day as sellers in Ha Noi by a net of VND6.8 billion ($323,810), while their net buys in HCM City decreased by VND700 million to just VND2.6 billion ($123,810). — VNS

Investors monitor share prices at Rong Viet Securities. Stocks rebounded yesterday on news that European leaders have finally agreed to expand their bailout fund to staunch the region's debt crisis. — VNA/VNS Photo Pham Hau

http://vietnamnews.vnagency.com.vn/Economy/217049/European-debt-deal-boosts-bourses.html