The VN-Index yesterday rose 0.99 per cent, the largest single day increase this week, to 930.46 points with turnover at 5.45 million shares worth VND470.15 billion (US$29.4 million).
Heavy buying helped most blue chips yesterday with PetroVietnam Drilling (PVD) and Vinamilk (VNM) climbing 2.63 per cent and 1.85 per cent respectively to VND156,000 and VND165,000.
It was activity outside the market the helped spur retail investors. Late Thursday, Viet Nam Insurance Corporation (Bao Viet) announced strategic partnership deals with HSBC and the Vinashin Group.
HSBC will purchase a 10 per cent stake in Bao Viet for VND4.12 trillion, while Vinashin will acquire 3.56 per cent for VND1.46 billion.
"The participation of big foreign institutions like HSBC in the equitisation of State-owned enterprises brought hope to investors that the market would see higher quality commodities and better liquidity in both OTC [over-the-counter] and listed shares," said Vo Ngoc Huy, deputy director of Sacombank Securities.
Bao Viet, the country’s largest insurer in terms of earnings, has yet officially listed on the stock exchange but held two relatively unsuccessful share auctions in its IPO this earlier year.
The partnership deals signed, Bao Viet plans to list on the Ho Chi Minh Stock Exchange.
On the OTC market, Bao Viet shares remained at VND67,000 each yesterday.
The majority of foreign investors are still sidelining trading activity in anticipation of the major public offerings later this year, including Vietcombank, said James Sang-Ho Ryu, CEO of Korea Investment Securities (KIS), in an interview Wednesday.
KIS this week opened a representative office in HCM City to take direct control of its seven investment funds in Viet Nam worth a combined $1.1 billion.
"While waiting for the IPOs, we will invest in listed companies if we find prices are reasonable," said Sang-Ho Ryu.
Yesterday was the ex-date for an 8 per cent dividend on mid-year earnings for Ha Noi Post and Telecommunications Construction (HAS). The company also issued additional shares.
HAS fell 21.72 per cent to close at VND77,500 a piece.
On the Ha Noi Securities Trading Centre, the HASTC-Index closed at 259.48 points, up 0.12 per cent with turnover at 1.3 million shares worth VND118.5 billion ($7.4 million).