Vinamilk helps shares rise again
Vinamilk helps shares rise again
Vietnamese shares rose yesterday, covering losses made during the session as dairy firm Vinamilk boosted investor confidence on its latest announcement on foreign ownership.
The benchmark VN Index on the HCM Stock Exchange inched up 0.2 per cent to finish at 622.20 points, extending a two-day gain of 0.3 per cent.
The HNX Index on the Ha Noi Stock Exchange gained 0.4 per cent to close at 83.88 points, rebounding from a two-day decline of 2.1 per cent.
Dairy firm Vinamilk (VNM) boosted local markets after the company yesterday decided foreign investors may own entire stakes in its capital.
VNM closed up 2.2 per cent at the end of yesterday's session after surging 5.1 per cent at some point during the day.
"Investors are expecting that the gain of VNM signals the State Investment and Capital Corp (SCIC) is preparing to sell its stake in the dairy company," Bao Viet Securities Corp (BVSC) wrote in its daily report.
Expectations that SCIC will withdraw its investment from Vinamilk also helped boost Binh Minh Plastic JSC (BMP) and DHG Pharmaceutical JSC (DHG), which jumped 3.5 per cent and 4.4 per cent, respectively. Investors are expecting the State to sell its ownership in those companies this year.
Other pharmaceutical firms and plastic producers also made gains. An Phat Plastic and Green Environment JSC (AAA), Domesco Medical Import-Export Corp (DMC) and Japan-Viet Nam Medical Instrument JSC (JVC) soared between 4.8 per cent and 6.9 per cent.
Some blue chips also recovered from recent falls, especially those on the northern trading bourse such as Sai Gon-Ha Noi Bank (SHB), Vicostone JSC (VCS) and Viet Nam Construction and Import-Export Corp (VCG).
On the negative side, investors remained cautious and chose to wait for official announcements made by countries that are directly involved in Britain's exit of the European Union, Sai Gon-Ha Noi Securities Corp (SHS) said.
Investors' cautiousness resulted in lower market trading liquidity with nearly 144 million shares in volume and VND2.6 trillion (US$115.8 million) in value, decreases in both volume and value from Monday's figures.
Yesterday, the central bank raised its daily reference mid-point rate by VND22 to VND21,888 for a US dollar. The reference mid-point rate has increased by VND43 after the last two sessions. Local banks were able to trade the Vietnamese dong and the dollar within a trading band of 3 per cent on either side of the mid-point rate.
