Vietnam index climbs last week, banks all gain

Vietnam's benchmark VN Index  rose 2.0 per cent at the break on the closing day of trading last week in positive sentiment, with banks climbing on news of lender BIDV's listing and investors buying blue chips on expectation of a raise in foreign ownership caps.
All banking shares gained in the morning session of the day after BIDV, Vietnam's second-biggest bank by assets, won approval to list all of its shares on the Ho Chi Minh Stock Exchange, making it the largest firm to make a share debut in Vietnam.
Sacombank led the gain, with shares surging 6.74 per cent, followed by VietinBank, Vietnam's largest partly private lender by assets, which advanced 2.5 per cent.   
    Stocks in the portfolio of the Market Vectors Vietnam exchange-traded fund (ETF) rose last Friday after the ETF's premium gained more than 7.0 per cent the previous day.
The premium advance would allow VNM to pour 500 billion dong ($23.7 million) into the Vietnamese share market, said analyst Nguyen Hoang Phuong at Ho Chi Minh City Securities.    
Hanoi-based lender Vietcombank advanced 1.81 per cent, and property firm Vingroup climbed 4.96 per cent. The two shares have the largest portions in the Market Vectors Vietnam ETF's portfolio, according to Reuters data.   Foreign investors also bought blue chips on expectation that the government would soon raise foreign ownership in listed firm within the next few weeks, said analyst Nguyen The Minh of Viet Capital Securities.
PetroVietNam Gas, Vietnam's largest listed firm, increased 1.95 per cent, while food producer Ma San Group  jumped 4.47 per cent.
In addition, the political crisis in Thailand has prompted investors to shift from the Thai market to Vietnam, where the price-to-earning (P/E) ratio is comparatively low, Minh added.
    Foreign investors have been net buyers on the Ho Chi Minh Stock Exchange so far in January, with 825 billion dong ($39.1 million) in net purchase up to Jan. 16, exchange data showed.
    The bourse was Southeast Asia's best performer last year and last Thursday hit its highest since May 2010.
    The index would further rise, with analysts expecting it to reach 600 points this year. It might edge down this week, however, given the increasing number of losing shares over the past sessions and falling shares on the smaller exchange in Hanoi on Friday, Minh said.