Real estate leads VN rebound
Real estate leads VN rebound
Vietnamese shares rebounded yesterday, boosted higher by real estate firms as investors eyed solid third-quarter earnings prospects of these companies.
On the HCM Stock Exchange, the VN-Index rose 0.8 per cent to close the session at 595.1 points. The Index decreased 0.7 per cent over the previous two sessions.
On the smaller bourse in Ha Noi, the HNX-Index also snapped a two-day decline with a gain of 0.8 per cent, sending it to a two-month high at 81.4 points.
The overall market condition was positive with nearly 41 per cent of total 679 trading stocks advancing while only 21 per cent declined.
Real estate developer Tan Tao Investment Industry Corp (ITA) was the biggest gainer with a rise of 6.3 per cent while others including FLC Group (FLC), Hoang Quang Consulting-Trading-Service Real Estate Corp (HQC), Ninh Van Bay Travel Real Estate Co (NVT) and Duc Long Gia Lai Group (DLG) increased between 1.5 per cent and 3.8 per cent.
"Investors are bullish on the earnings prospects of real estate companies in the third quarter," said Nguyen Thanh Tung, an analyst at Ha Noi-based Royal Securities Co.
Tung said the second half of the year was the time that many property firms put revenues of important projects in their accounts.
FLC estimated its third-quarter revenue at nearly VND1.3 trillion (US$58 million), a 250-per-cent rise year-on-year while pre-tax profit was projected at VND300 billion ($13.4 million), up 240 per cent over the same period of last year.
Meanwhile, HQC also showed confidence in completing its yearly targets of VND3.23 trillion ($144.2 million) in revenue and VND320.2 billion ($14.3 million) in net profit by this quarter.
HQC, ITA and FLC were also the most active stocks nationwide yesterday with each seeing 5 to10 million shares traded.
After a two-day fall, bank stocks also rebounded yesterday. Seven of nine listed banks posted gains while none declined.
Large-cap banks like Vietcombank (VCB), Sacombank (STB), Eximbank (EIB), Bank for Investment and Development of Viet Nam (BID) and Military Bank (EIB) edged up between 0.4 and 2.1 per cent.
Overall liquidity decreased slightly with a total of nearly 135 million shares worth VND2 trillion ($89.3 million) being traded in the two markets, down 4 per cent in volume and 11 per cent in value compared with Wednesday's levels.
