May 4: Vietnam Stocks Soar 1 Year High As Lending Rate Capped

The benchmark VN Index rose 7.53 points or 1.6% to 476.32, the highest level in 52 weeks. Volume increased 4% to 108.1 million shares worth of VND1.71 trillion.  Put-through trading contributed 10.2 million shares worth VND218.56 billion.

Of note, 5 million REE shares were changed hands at VND16,700 each versus today market close at the ceiling price of VND17,800. Another 1.3 million MCG shares were changed hands at the flat line of VND7,400 each.

The market breadth was broadly positive on the primary bourse where 240 stocks advanced, 38 fell, 31 closed unchanged of which 126 hit the ceiling, 13 limited down.

The VN30 Index lagged behind the broader market, still gained 6.4 points, or 1.19%, to 542.5 with 27 million shares changed hands.

The market opened in the green with 4.6 million shares changed hands. The trading pace was fast at the beginning of the order matching session as buyers were aggressive. However, profit takers were right there and started to sell into the strength at about 9:50 A.M., paring the market gain almost as fast as it came up earlier. The bulls came back in the last 40 minutes of the morning session, pushing the index back to the high at the morning close.

Afternoon session resumed with renewed buying interest, pushing the index to the new highs. Though the market closed off the peak, the sentiment was bullish and liquidity was good.

Traders’ whisper about lending rate cap at 15% turned out to be official later today after the State Bank of Vietnam (SBV), the country’s central bank, announced on its website the Circular No14/2012/TT-NHNN which stipulated an interest rate spread at +3%p.a. on loans to 4 groups: agriculture and rural sector, exporters, supportive industry and SMEs. With current deposit rate cap of 12%p.a., the lending rate cap will be 15%, effective from next Tuesday, May 8, 2012.

In the market today, hot stocks resumed ceiling performance, pennies to blue chips were mostly gainers.

Vinh Son – Song Hinh Hydropower Joint Stock Company (VSH), the most active stock on a trade of 3.7 million shares, leaped 4.8% to end at VND13,100.

Tan Tao Investment – Industry Corporation (ITA), coming second in liquidity with 3 million shares changed hands, looked up 1.11% to settle at VND9,100.

Saigon Securities Inc (SSI) went up 3.08% to finish at VND23,400 on a trade of 2.9 million units – the third most active.

On the Hanoi Stock Exchange, the HNX extended gain, adding 1.58 points or 1.98% to 81.27, breaking the resistance 80 and stayed at 1 year high. Trading volume rose 7.1% to 101.1 million shares worth VND1.06 trillion.

The market breadth was broadly positive on the primary bourse where 276 stocks advanced, 77 fell, 43 closed unchanged of which 122 hit the ceiling, 15 limited down.

Hanoi-based lender Habubank (HBB), the most active on the measure with 12.64 million shares changed hands, slid 1.6% to end at VND6,200 – the third day of losses after it reported huge losses.

VNDirect Securities (VND), coming second in liquidity on a trade of 6.3 million units, leaped 4.65% to end at VND13,500 per share.

PetroVietnam Construction (PVX) looked up 2.7% to settle at VND11,400 on a trade of 5 million shares – the third most active.