Confidence continues on VN-Index
Confidence continues on VN-Index
Shares advanced for a second day on the two exchanges yesterday as investors continued to show their confidence in the market outlook.
The benchmark VN-Index on the HCM Stock Exchange retreated from the day-high at nearly 726 points to close at 723.9 points, up 0.5 per cent over the previous session, and the highest recorded since February 20, 2006.
On the Ha Noi Stock Exchange, the HNX-Index edged up 0.5 per cent to end at 91.1 points. The northern market index inched up 0.1 per cent on Wednesday.
Liquidity remained positive with a total of 242 million shares worth VND4.3 trillion (US$190.4 million) being traded in the two markets.
Big firms in pharmaceutical, food-beverage and financial industries led the upturn.
Drug companies were the biggest gainers with an average industry growth of 2.83 per cent yesterday.
Shares of DHG (DHG) and Traphaco (TRA) climbed 0.6 per cent each thanks to their rosy earnings results.
Net profit of DHG Pharmaceutical increased by VND33 billion at the end of 2016, or 15 per cent year-on-year, after audit to over VND255 billion. Meanwhile, Traphaco yesterday reported in its annual shareholders’ meeting an after-tax profit of VND210 billion in 2016, a year-on-year growth of 18 per cent. It has targeted a net profit of VND240 billion this year, up 14 per cent year-on-year.
Other drug manufacturers like Imexpharm Corp (IMP) and Benovas Pharmaceutical (DCL) also rose substantially.
In the food and beverage group, the two biggest listings, dairy giant Vinamilk (VNM) and brewery Sabeco (SAB) increased by 1.6 per cent and 1 per cent, respectively, both accounting for 0.26 per cent of the VN-Index’s growth.
Banks lost their morning gains when Vietcombank (VCB), the second biggest listed lender, decreased 0.3 per cent. However, five other banks including BIDV (BID), Military Bank (MBB), Sacombank (STB), Asia Commercial Bank (ACB) and Sai Gon-Ha Noi Bank (SHB) leapt between 0.4-2 per cent.
According to analysts at Vietnam Investment Securities Joint Stock Company, the VN-Index will likely extend its gains and move in the range of 723-725 points in today’s trade.
“In tomorrow’s trade, steel stocks such as Hoa Phat Group (HPG), Hoa Sen Group (HSG) and Nam Kim Steel (NKG) can see growth thanks to the information related to anti-dumping taxation on steel imports,” they wrote in a market report on Thursday.
The Ministry of Industry and Trade yesterday decided to impose anti-dumping duties on imported coated steel from China and South Korea. This decision is expected to help local steel manufacturers better compete in the home market and boost the performance of steel companies.
