Vietnamese stocks on rebound

Wednesday, Apr 06, 2016 08:22

Vinamilk's production line at the My Phuoc 2 Industrial Zone in Binh Duong Province. Vinamilk announced yesterday that it will sell 7 of its businesses to raise more foreign capital for the company. — Photo

HA NOI (Biz Hub) — Vietnamese shares bounced back on both local exchanges yesterday, led by the food and beverage sector.

The benchmark VN Index on the HCM Stock Exchange rose 0.8 per cent to close at 560.32 points, ending a three-day loss of 2.5 per cent.

The HNX Index on the Ha Noi Stock Exchange added 0.5 per cent to finish at 78.89 points. The northern index has increased by 0.5 per cent in the last two trading days.

The markets were lifted by the food and beverage sector, led by dairy firm Vinamilk and food producer Masan Group, on positive news about their businesses.

Investor confidence in fairy firm Vinamilk rose after the company announced it will sell seven of its businesses, including a real-estate brokerage, in order to raise foreign capital for the company. At the end of yesterday's trading session, Vinamilk (VNM) gained 2.2 per cent in value.

On Monday, Food and beverage producer Masan Group (MSN) announced a net profit of VND2.5 trillion (US$112.3 million) in 2015, an increase of 25 per cent from the previous year. MSN increased by 0.7 per cent yesterday.

Truck dealer Hoang Huy Investment Services JSC (HHS) and financial firm FIT Investment JSC (FIT) also made gains, after the two companies planned to buy back shares from stockholders. Both companies' stocks surged 6.4 per cent and 5.9 per cent, respectively.

Meanwhile, Sai Gon Securities Incorporation (SSI), HCM City Securities Corporation (HCM) and VNDirect Securities Corporation (VND) drove up the brokerage sector, after these three companies ranked among the top four leading brokerage companies in Viet Nam.

SSI was up 1.9 per cent yesterday. HCM increased by 2.1 per cent, and VND jumped 4.5 per cent.

Other brokers also made good gains, including MB Securities Corporation (MBS), Kim Long Securities Corporation (KLS) and Sai Gon-Ha Noi Securities Corporation (SHS).

In addition, markets advanced as investors tried to buy stocks that have declined to more attractive price levels recently.

Among those stocks, seafood company Hung Vuong JSC (HVG) jumped 3.1 per cent after slumping 22 per cent in eight previous sessions. Binh Minh Plastic JSC (BMP) gained 2.8 per cent after falling 5.9 per cent during five previous sessions. And software producer FPT Corporation (FPT) edged up 0.4 per cent, from a five-day decline of 2.5 per cent.

On the other hand, PetroVietnam Coating Corporation (PVB) weighed on the energy sector, slipping 5.9 per cent, after the company said it will propose that shareholders approve a targeted net profit of only VND5 billion for this year - which equals just four per cent of last year's performance.

Both local markets traded more than 190 million shares worth VND2.77 trillion ($123.2 million), an increase of 28.6 per cent from Monday's trading value. — VNS

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