Shares rally to boost plummeting indices
Shares rally to boost plummeting indices
Stocks rallied strongly May 21 on both of the nation's stock exchanges, ending seven consecutive sessions of declines. Over half of all codes roared to their ceiling prices.
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| Source: VietstockFinance |
On the HCM City Stock Exchange, 29 of the top 30 shares by market capitalisation and liquidity gained, with insurer Bao Viet Holdings (BVH), PetroVietnam Finance (PVF), software giant FPT, Phu My Fertilisers (DPM) and Saigon Securities Inc (SSI) all rising by the maximum one-day advance of 5 per cent.
Of this group of shares, only commercial baker Kinh Do (KDC) dropped by 4.8 per cent to VND39,400, its sixth sucessive session of declining after news that the company had posted a net profit in the first quarter of just VND361 million (US$17,000).
The VN-Index jumped by 3 per cent over Friday's close, ending yesterday's session above 448 points. The VN30 Index also rose by 2.82 per cent to 518.86 points. The volume of trades decreased by 4 per cent from Friday's pace to 77.3 million shares even as the value of transactions rose by 3 per cent to VND1.26 trillion ($60 million).
Shares of PetroVietnam Gas, a PetroVietnam Group affiliate, debuted yesterday under the code GAS and at a reference price of VND36,000 per share, its total capitalisation of VND68.2 trillion ($3.25 billion) constituting 9 per cent of total market capitalisation and making it instantly the second-leading share on the southern bourse.
GAS climbed 14 per cent over its reference price in its first, unregulated day of trading, concluding the seesion at VND41,000 per share on trades of 1.35 million shares.
Richard Huynh Le Minh, deputy director of Viet Capital Securities Co, the underwriter for PV Gas's IPO and listing, said State holdings continued to account for 96.7 per cent of PV Gas's equity and that listed shares only represented 3.23 per cent of its capital.
"The supply of shares will be quite limited while demand could be quite high," Minh said.
Last year, earnings of PV Gas exceeded VND64.2 trillion ($3 billion) while profits totalled VND6.42 trillion ($305.7 million), increases of 33.8 per cent and 30.4 per cent over the previous year, respectively. Earning-per-share in 2011 were an impressive VND3,120. In the first three months of this year, the company reported a profit of nearly VND2.4 trillion ($114million), reaching 45 per cent of its target for the entire year.
On the Ha Noi Stock Exchange, the HNX-Index also soared by 4.1 per cent yesterday to 76.84 points with 45.7 million shares traded. Value reached just VND455.5 billion ($21.7 million), a decline of 35.5 per cent from Friday's level.
Habubank (HBB), on trades of nearly 3.9 million shares, continued to be the most-active share nationwide, closing up 5.8 per cent to VND5,500 per share.
Hoang Thach Lan, head of MHB Securities Co's brokerage department, said the stock market was still in a recovery phase and predicted that more supportive economic news would boost the market in the near future, including additional measures to assist businesses, lower interest rates and a slowing inflation rate.
Foreign investors continued to unload shares on the HCM City market yesterday, concluding yesterday as net sellers by a margin of VND109.4 ($3.2 million). In Ha Noi, they were net buyers of shares worth a net of VND4.2 billion ($200,000).
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