Stock market eclipses 900-point
Stock market eclipses
900-point mark, headed beyond
market index soared 3.32 percent to hit a new record Friday, with blue chip
stocks enjoying healthy gains.
rocketed 98.20 points to exceed the 900-point threshold, closing at 914.79 with
46 gainers and 42 losers.
watchdogs forecast the 1,000-point mark would be well within reach this week if
the trend continued.
reported 8.2 million shares valued at VND1.03 trillion (US$64 million)
The top three
performers were CII (Ho Chi Minh City-based Infrastructure Investment and
Development Co), FPT (IT developer), and GMD (Gemadept), hit the ceiling by 5
FPT led the
top winner list gaining VND25,000 to close VND525,000 per unit; the GMD runner
up increasing VND9,000 to VND189,000; and CII made gains of VND3,000 to
market heavyweights like SAM (Cables And Telecom Materials Joint Stock Company)
and PVD (PetroVietnam Drilling and Service Co) increased by between VND10,000 to
VND11,000 to close at VND211,000 and VND233,000 respectively.
investors continued to pump VND392 billion ($24 million) into buying 3.2 million
analysts attributed the bourse rise to optimistic forecasts on the market last
is set to amount to $30-40 billion by 2010, accounting for between 30 and 40
percent of the country�s gross domestic product (GDP).
year alone, market capitalization is projected at nearly 30 percent of GDP,
currently $60 billion.
Safe stock collateral
At a recent
conference, a State Bank of Vietnam (SBV) representative said loans against
stock collateral accounted for just 2 percent of the country�s total outstanding
loans, equivalent to VND1.5-1.6 trillion ($93.4 � 99.7 million), and that the
credit system had not been adversely affected.
central bank also confirmed that lending for securities investment ran more risk
than other lending forms since the market tended to be volatile.
Thus SBV has
decreed a range of official documents to warn credit institutions to be more
Particularly, banks were not allowed to offer loans to their securities
arms as it would expose the bank and banking industry to unnecessary