Shares up on confidence
Shares up on confidence
Vietnamese shares remained mostly positive in the two local markets yesterday, driven by better investor confidence in particular groups of stocks with supporting business information.
The benchmark VN Index on the HCM Stock Exchange rose 0.26 per cent to close at 716.77 points, totaling a gain of 0.8 per cent after the last two sessions.
The HNX Index on the Ha Noi Stock Exchange ended at 89.11 points, almost unchanged from Tuesday’s closing level of 83.12 points.
Market trading liquidity declined from Tuesday’s numbers with more than 203.5 million shares being exchanged, worth VND3.64 trillion (US$162.1 million).
The stock market yesterday saw a strong boost from fertilisers on expectations that the ministry of industry and trade will soon approve their proposal on the protectionist policy for some of the imported fertiliser products.
Biggest gainers among fertiliser stocks were PetroVietnam Fertiliser & Chemicals (DPM), PetroVietnam Ca Mau Fertilizer (DCM) and Lam Thao Fertilisers and Chemicals (LAS) as they hit the daily trading limit.
DPM surged 6.9 per cent, DCM soared 6.8 per cent and LAS jumped 9.7 per cent.
According to the General Customs Department, Viet Nam in 2016 imported $1.1 billion worth of 4.15 million tonnes of fertiliser products. The ministry of industry and trade has forecast that a similar proportion of fertiliser imports would be reached in 2017, mainly from China.
Analysts at Bao Viet Securities Company (BVSC) said in their note that if the protectionist policy is approved, local fertiliser companies will see strong growth as they have less competition from imported products.
However, investors are suggested to wait for the official decision from the ministry before making purchases in fertiliser stocks, BVSC analysts said.
Sugar producers were also in the focus yesterday as a M&A deal between the two producers Bien Hoa Sugar JSC (BHS) and Thanh Thanh Cong Tay Ninh JSC (SBT) will be discussed at the two firms’ upcoming annual shareholder meetings.
BHS closed up 6.9 per cent, hitting the daily trading limit, while SBT was flat.
In addition, the stock market was supported by positive performances from some other large-cap stocks, including dairy producer Vinamilk (VNM), Faros Construction (ROS) and Vietcombank (VCB).
On the opposite side, bank and energy stocks remained negative. Five of the nine listed banks declined while energy companies like PetroVietnam Gas (GAS) and PetroVietnam Technical Services (PVS) remained in the negative territory on the volatile crude prices.
