Brokerages optimistic about VN

Monday, Nov 16, 2015 08:00

An investor watches market development at Tan Viet stock trading floor in Ha Noi. — VNS Photo Doan Tung

HA NOI (Biz Hub) — Vietnamese shares may extend their gains this week, thanks to positive quarterly performances that were announced at the end of last week, brokerage firms wrote in their weekly reports.

They further said that the benchmark VN Index on the HCM Stock Exchange could reach 615 points this week, as some large stocks benefit from companies' higher quarterly performances.

These stocks included Military Bank (MBB), food producer Masan Group (MSN), Vietinbank (CTG) and property developer FLC Group (FLC), they said.

Both local exchanges rose on Friday as the benchmark VN Index on the HCM Stock Exchange gained 0.9 per cent to close at 611.27 points, and the HNX Index on the Ha Noi Stock Exchange inched up 0.6 per cent to end at 81.57 points.

However, the two local indices were mixed from the previous week. The VN Index fell 0.2 per cent while the HNX Index inched up 0.1 per cent.

On the negative side, leading sectors on the market, such as the financial sector consisting of brokerage firms and banks, along with the energy sector, recorded losses during the week.

The energy sector index dropped 4.1 per cent after global oil prices hit a four-year low. The US benchmark crude West Texas Intermediate (WTI) and the Brent crude both fell 8 per cent to end at US$40.74 and $43.61 per barrel, respectively.

Therefore, local energy stocks declined, including PetroVietnam Gas Corporation (GAS), PetroVietnam Drilling&Well Services Corporation (PVD) and PetroVietnam Technical Services Corporation (PVS), which lost 8.2 per cent, 7 per cent and 6 per cent, respectively.

Banks and brokerage firms lost 1.5 per cent and 1.3 per cent, as brokerage firms absorbed bad news about their businesses, such as margin trading and quarterly performances, while banks were hanging onto the possibility of a Fed rate hike in December, heaping pressure on the forex market.

Also, the biggest stocks in this industry, such as Vietcombank (VCB), Vietinbank (CTG), Bao Viet Holdings (BVH), Sai Gon Ha Noi Securities Incorporate (SSI) and HCM City Securities Corporation (HCM), fell slightly during the week.

VCB and CTG were both down 1 per cent, BVH fell 5.1 per cent, SSI lost 1.7 per cent and HCM declined 3.4 per cent from the previous week.

On the positive side, the national stock market received strong support from plastics producers and food sellers.

Plastics producers benefited from the fall of global oil prices, being able to reduce their production costs for using crude oil as input materials. The biggest stocks, such as Binh Minh Plastics JSC (BMP), jumped 7.3 per cent, Tien Phong Plastic JSC (NTP) surged 4.1 per cent and Rang Dong Plastic JSC (RDP) gained 8 per cent.

Among food producers, Vinamilk (VNM) was the strongest advancing stocks to drive the industries up. VNM surged 6.2 per cent after the company reported a higher quarterly performance, while investors were expecting the State to soon sell its capital in Vinamilk.

Both local exchanges traded a daily volume of 170.6 million shares and daily value of VND2.7 trillion ($120.5 million), an increase of 7 per cent in volume and a decrease of 4 per cent from the previous week. — VNS

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