Roundup: Vietnam sees bullish southern bourse

The Vietnam Stock Index or VN-Index, a capitalization-weighted index of all the companies listed on the Ho Chi Minh City Stock Exchange, has surged this week on strong demand for various shares after a period of hibernation.

The index had the biggest gain in four months on May 20 when it increased 13.28 points. Strong investment of investors played a key role in lifting the index.

Despite a 6 cent-hike in fuel prices on May 20, many investors still played ducks and drakes with their money. They placed big orders for shares of oil and gas companies, banks and realty developers.

The recovery of blue chips also contributed to the higher index. The VN-Index closed at 561.82 points on Friday, down 9.26 points, or 1.68 percent, from the previous trading day's close. From the previous week's close, the index won 24.38 points, or 4.53 percent.

During the week, the index went four ups and only down, posting the highest level of 561.82 points on Friday, and the lowest level of 528.95 points on Monday. In comparison, it ranged between 537. 44 points and 551.67 points in the previous week.

About 119.603 million shares worth 1.904 trillion VND (87.88 million U.S. dollars) changed hands on the Ho Chi Minh City Stock Exchange on Friday, an increase of 6.6 percent in volume, but a decrease of 4.39 percent in value against Thursday.

According to MayBank Kim Eng Securities Company, in the last week of May, the market may tend to accumulate, then go on upward trend slowly. Therefore, investors should keep cautious, hold stocks, observe more about dynamics of the market and seize the opportunity for mid-term investment. Endi