Vietnam Stock Market

Bonds, gold and the dollar have risen in 2010 as investors dumped stocks. The Bank of America Merrill Lynch Global Broad Market Index of bonds climbed 4.2 % in the first half of the year, while the precious metal increased 13 % to a record.

The VN Index posted a small gain yesterday on global market rallies but caution is still seen ahead of VEIL fund liquidation to be voted on next Monday. The local market will continue to test 500 threshold today with support from strength of world markets.

On the Hanoi Stock Exchange, foreigners continued to be net buyers of VND2.35 billion of shares on this smaller cap bourse. Foreigners top picks were PVS, SD3, EBS, S99 and PLC while their top offloads were NTP, SSM, SSS, MCC and BTS.

The VN Index gained yesterday but liquidity fell on lack of fresh news. The market sentiment is still fragile, money flows are slow and with the global market weaknesses, the local market will continue to move sideways in a narrow range before new market driving factors appear.

Foreigners top offloaded shares were FPT, VIC, STB, HPG and PPC with selling turnovers of VND7.3 billion, VND6.6 billion, VND4.6 billion, VND4 billion and VND3.8 billion respectively.

VR Capital Group Ltd., a Moscow-based hedge fund, on June 17 wrote to shareholders in Dragon Capitals Vietnam Enterprise Investments Ltd. calling for the fund to be liquidated at its annual general meeting next week. The fund is closed-end, which means that new shares are rarely issued after the fund is established and investors are locked in until it closes.

The VN Index posted a relative loss yesterday on worries over fund liquidating and huge bank share supply. However, sentiment-driven local market now has good reasons to bounce back after global markets posted gains last night and the 500 threshold is still a strong support.

In cash market, foreigner showed their interest in the bank shares today and their top buying list were EIB, STB, HAG, FPT and VNM with buying values of VND12.3 billion, VND7.4 billion, VND6.5 billion, VND6.3 billion and VND5.7 billion respectively, the StoxPlus data showed.

Asian stocks slid on Wednesday as investors worried global growth was faltering, with Japans Nikkei average down 0.6 %. European stocks were down 1 % in morning trade, resuming an almost uninterrupted two-week retreat as Tuesdays short-covering rally dwindled.

Dominic Scriven, CEO of Dragon Capital, said the Clean Development Fund "will deliver solid financial returns and positive environmental and social impacts in a set of developing countries in the Mekong and Brahmaputra (major rivers in Central and South Asia) regions."