Hanoi - XINHUA
Vietnam's stock market bounced back at the end of the week after declining for two straight days. The information of a plan proposed to the Vietnamese government by the State Securities Commission (SSC) to raise the ceiling for foreign ownership, aimed at encouraging transactions on the local bourse, helped boosted investors' sentiment. The VN-Index of the southern Ho Chi Minh City Stock Exchange ( HoSE) went up 3.49 points, or 0.7 percent, to close at 501.34 points on Friday. During the week, VN-Index gained 2.73 point, or 0.54 percent, on last Friday's close. The index, fluctuating in a range from 497. 07 points to 502.52 points, experienced three ups and two downs, posting the highest level of 501.34 points on Friday and the lowest level of 496.12 points on Wednesday. A total of 91.22 million shares worth 1.12 trillion VND (53.18 million U.S. dollars) changed hands at the HoSE on Friday, an increase of 40.17 percent in volume and 31.49 percent in value as against Thursday. VN-30 index, the new benchmark index for the HoSE applied since Feb. 6, 2012 to track the 30 leading shares by both market capitalization and liquidity, closed at 559.75 points on Friday, up 4.02 points, or 0.72 percent against the previous trading day. A total of 25.46 million shares were traded, worth 578.7 billion VND (27.42 million U.S. dollars). On the country's northern bourse Hanoi Stock Exchange, the HNX- Index concluded at 63.93 points on Friday, up 0.23 points, or 0.36 percent, from the previous close. In its plan, the SSC said that foreign investors will be allowed to own up to 60 percent of the voting stakes of a listed company, while the rate was previously designed only for foreign strategic partners of the company. Insiders said the higher ceiling would help improve market liquidity, and also help attract more foreign investment. The information from SSC boosted blue chips and pushed liquidity to over 1 trillion Vietnamese dong, or over 50 million U. S. dollars on Friday. However, some worried that higher foreign ownership would brings higher risks for the Vietnamese listed companies of being taken by foreign companies. In the last two months of 2013, analysts also foresee a more positive prospect for Vietnam's stock market, as the government will continue to focus on stabilizing the economy, management of bad debts and policies to simplify taxes, interest rates and credit access.