After struggling in the morning, the market accelerated upward in the afternoon session on Friday as real estate stocks and petroleum remained upbeat.
The VN Index on the HCM Stock Exchange advanced 0.64 per cent to close at 1,174.46 points in the last trading of the week. The Index edged down 0.44 per cent on Thursday, after advancing 1.6 per cent in the previous three days.
The HNX Index on the Ha Noi Stock Exchange increased 0.44 per cent to end at 132.46 points. It closed off 0.51 per cent in the previous session.
More than 249 million shares, worth VND6.9 trillion (US$302 million), were traded on the two local bourses.
Market breadth was quite balanced, with 284 gaining shares, 202 declining ones and 255 stocks ending flat.
The UPCoM Index on the Unlisted Public Company Market moved up 0.76 to close at 60.66 points. The index gained 0.77 per cent in the previous session.
Real estate stocks drove the market up, with Vingroup (VIC) and No Va Land Investment Group Corporation (NVL) up 1.9 and 4.4 per cent, respectively.
Petroleum stocks also performed well, with prominent names like PetroVietnam Gas Joint Stock Corporation (GAS), Viet Nam National Petroleum Group (PLX) and PetroVietnam Drilling & Well Services Corporation (PVD) advancing.
Large-cap stocks under-performed, as 17 of the 30 largest stocks by market capitalisation and liquidity in the VN30 Index increased, pulling the large-cap index up 0.73 per cent to 1,153.08 points.
Foreign investors today were net buyers of VND352.2 billion on HOSE, focusing on food processor Vinh Hoan Corporation (VHC) (VND75.6 billion), Masan Group (MSN) (VND 66.1 billion) and property developer Vingroup (VIC) (VND 61.3 billion). In addition, they bought a net buy of VND3.16 billion on the Ha Noi Stock Exchange.
According to Bao Viet Securities (BVSC), after a week of fluctuations, VN-Index is expected to send clearer signals next week. However, cash flow contraction reflected investors’ caution.
“We think VnIndex is still at high risk of a short-term correction,” BVSC said in its daily report.
Hapro IPO
Also on Friday, the Vietnamese government raised over VND980 billion by selling a 34.51 per cent stake in the state-run trading and retailing firm Ha Noi Trade Corporation (Hapro) in its initial public offering (IPO) on the Ha Noi Stock Exchange.
The proceeds surpassed the government’s expectations of VND972.8 billion from the IPO.
The divestment of the company is the latest in Viet Nam’s broader privatisation programme to increase efficiency and performance of state-owned enterprises.
With more than 40 subsidiaries under its belt, Hapro operates a chain of supermarkets and convenience stores and owns many land plots and properties at prime locations, increasing its attractiveness for investors.
Nearly 364 investors including two organisations and 344 individuals registered to buy the 76 million shares that were offloaded in the auction with the highest winning price of VND20,000 apiece.
Hapro has charter capital of VND2.2 trillion. Following the equitisation plan, the state will not hold any shares in Hapro after equitisation.
According to Vietnamese regulations, any state-owned company has to list its shares within one year after its IPO.
In 2017, Hapro’s net revenue was VND1.93 trillion, down 17 per cent year on year, while its pre-tax profit was down 8 per cent at VND11 billion. The privatisation plan for Hapro was approved by deputy Prime Minister Vuong Dinh Hue last December. — VNS