Trading jump on strong earnings

Aug 16th at 14:05

16-08-2013 14:05:10+07:00

Trading value yesterday surpassed VND1 trillion for the first time since the middle of last month on Vietnamese stock markets as investors were upbeat on better-than-expected earning reports released by several leading companies.

On the HCM City Stock Exchange, the VN-Index climbed to a two-month high of 508.22 points, up 0.92 per cent over Wednesday, while the value of trades rose 40 per cent to a total of nearly VND1.14 trillion (US$54.3 million).

Hoang Anh Gia Lai Corp (HAG) surged 5.3 per cent following news that its first half earnings doubled that of last year, totalling VND368.3 billion ($17.5 million) ending June.

Profits during the second quarter alone made up VND283.6 billion ($13.5 million), of which HAG's sugar business accounted for 44 per cent of the company's total revenue.

Insurer Bao Viet Holdings (BVH) yesterday also reported an after-tax profit for the parent company of VND600 billion ($28.6 million) in the first half, up 2 per cent year-on-year.

Seventeen of the top 30 shares by market capitalisation and liquidity advanced while only four declined, pushing the VN30 up 0.85 per cent to 559.07.

Investors also focused more on mid-cap shares with good earning results such as PetroVietnam Transportation (PVT), FLC Group (FLC) or Tan Tao Investment Industry (ITA). The latter was the most active with 6 million shares exchanged at VND6,000 each, up 5.3 per cent over the previous session.

Up to 16 codes had trades of over 1 million shares.

On the Ha Noi Stock Exchange, the HNX-Index climbed 0.68 per cent to 62.33 but market value remained modest at VND200 billion ($9.5 million).

The gainers outnumbered the losers by 104-71 while 204 shares closed flat.

Property developer Sacomreal (SCR) remained the most active with 4.8 million shares traded at VND6,400 a share.

Despite improvements yesterday, analysts at SHB Securities (SHB) warned of an unstable uptrend as there was still a lack of supporting information to cement investor optimism.

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