Nov 25: Vietnam Stocks Close Mixed, Caution Prevails

The benchmark VN Index added 1.57 points, or 0.41% to end at 383.35. Volume fell 4.9% to 27 million shares worth VND397.7 billion including 10.2 million shares worth VND171.8 billion changed hands in the put-through deals.

Put-through deals continued to be very active. We saw 5.5 million STB shares changed hands today, a third straight day STB recorded heavy put-through deals. Another 2 million MCG were traded in the put-through deals, too.

Prime Minister and governor Nguyen Van Binh of the State Bank of Vietnam are having testimony at the NA meeting today.

Binh said applying only deposit interest rate cap is the best choice under current conditions. Banks raised funds at 14% therefore lending rates at 16-18% are reasonable, he said, adding that some banks are posting high profit to PR, their real profit will only be known after December 31 and with full loan loss provision.

He promised to complete structuring weak banks by 2013. Vietnam currently has 8 weak small banks.

The governor also said bad debt ratio in the banking system is estimated to stand at 3.8% this year from current 3.3%.

The Prime Minister Nguyen Tan Dung said together with bank restructuring, the government will also restructure stock market, bond market, insurance companies and investment funds in compliance with international standards to create fund channels for the economy.

The Finance minister, Vuong Dinh Hue, said electricity prices will be raised by between 10%-15.6% in 2012.

Back to the market, VN Index opened in the red with 0.7 million shares traded. Bottom fishing sent the market up in the continuous price bidding session. Heavy weighs BVH, MSN, VIC, VPL gained, contributing much on the market rally today. Market closed at the high of the day but liquidity fell and broad market was weak.

Market breadth was still negative, among 306 listed firms on HOSE, losers outweighed gainers by 108-105 and 68 stocks unchanged and the rest untraded. As many as 29 stocks hit ceiling while 37 issues fell to the floor, 5% each side.

Among top 10 market caps, 4 rose (MSN, BVH, VPL, VIC), 4 fell (STB, VNM, CTG, VCB)  and 2 unchanged (EIB, HAG).

Saigon Thuong Tin Commercial Joint Stock Bank or Sacombank (STB) led the market in volume with 2.3 millions shares traded, closing down 1.4% to VND14,600.

Vietnam Export Import Commercial Joint Stock Bank (EIB) was second most active stock with 0.7 million shares trade, closing unchanged at VND15,300.

Petrovietnam – Idico Long Son Industrial Park Investment JSC. (PXL) ranked third with 0.7 million shares traded, closing down 4.7% to VND4,100.

Military Commercial Joint Stock Bank (MBB) came forth with 0.6 million shares traded, closing down 0.8% to VND12,300.

Becamex Infrastructure Development JSC. (IJC) was in the fifth place with 0.5 million shares traded, closing down 1% to VND9,500.

On the Hanoi Stock Exchange, the HNX bucked trend to close down 0.12 point or 0.2% to 61.15. Trading volume fell 0.8% to 19.2 million shares traded for VND177.3 billion of which 2.2 million shares worth VND28.5 billion were changed hands in put-through deals.

Market breadth was negative with 73 gainers, 162 losers and 40 flat issues and 118 untraded. Among top 10 market caps, 2 gained, 5 lost and 3 unchanged.

High liquid and speculative shares KLS, VND, PVX, VCG were all losers.

PetroVietnam Construction Joint Stock Corporation (PVX) was the most active stock with 2.6 million shares changed hands, closing down 45% to VND8,500.

VNDIRECT Securities Corporation (VND) came second with 1.6 million shares traded, closing down 1% to VND9,800 on average.

Kim Long Securities JSC (KLS) ranked third in the list with 1.5 million shares traded, closing down 1% to VND9,800 on average.