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Oil driller offers single bright spot

Update: June, 15/2012 - 08:23

HA NOI — Shares continued to lose ground yesterday on the nation's stock exchanges. On the HCM City bourse, the VN-Index declined by another 0.5 per cent to close at 425.28 points.

The value of trades fell by half from Wednesday's level to VND767 billion (US$36.5 million), as demand continued to shrivel and volume fell to 46.9 million shares.

Decliners outnumbered advancers by 140-73.

Of the 30 leading shares tracked by the VN30 Index, only seven advanced, including food processor Masan Group (MSN), financial conglomerate Ocean Group (OGC), Phu Nhuan Jewelry (PNJ) and PetroVietnam Drilling Services Co (PVD). The VN30 Index retreated 0.8 per cent to 500.24 points.

In a recent report, Kim Eng Securities Co analyst Nguyen Thi Ngan Tuyen said PVD was a "new investment opportunity" and recommended buys with a target price of VND50,500 ($2.40) based on the expectation that the stock's price-to-earnings ratio would reach 10.

"An obvious advantage of the company is that PetroVietnam is a major shareholder, holding over 50 per cent stake," she said. This would help the company easily obtain drilling contracts in a field otherwise dominated by foreign competitors.

The company also halted its plan to issue $200 million worth of international bonds due to a debt-to-equity ration of 1.16 and has decided instead to issue 40 million additional shares.

On the Ha Noi Stock Exchange, the HNX-Index shed 0.7 per cent to end the day 74.24 points. Decliners overwhelmed advancers by 180-77. The value of trades dropped slightly to VND373 billion ($17.7 million), while volume totalled nearly 36 million shares. — VNS

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