HA NOI (VNS)— The price of PV Gas (GAS) shares hit a record high in recent days, prompting many internal shareholders to sell.
Stock analysts said the operation of the gas giant had been stable with high revenues and profits. The price of GAS shares had almost doubled since its debut in May last year, hitting a record high at VND62,000 (US$2.95) on Wednesday.
Viet Nam's stock market is also rising with the benchmark VN-Index reaching over 520 points. Strong increases in large-cap shares such as GAS, dairy giant Vinamilk (VNM) or Masan Group (MSN) have bolstered the rallies. Many analysts warn that those shares are under pressure of a downward correction.
Since the beginning of March, many PV Gas executives have registered to sell shares which totalled nearly 50,000 shares. Many succeeded in their sales, including vice chairman Vu Dinh Chien selling 51,600 shares; chief accountant Nguyen Mau Dung 50,000 shares and deputy general director Pham Hong Linh 47,7000 shares.
PV Gas affiliates such as CNG Viet Nam, a supplier of compressed natural gas, sold its holdings of 100,000 shares.
CNG bought GAS shares at just VND31,000 ($1.48) before the company listed stocks on the exchange. Besides a 30 per cent cash dividend it received last year, CNG has earned a profit of 70 per cent from the investment.
According to a report on PV Gas of Phu Hung Securities Co, the gas business has a solid foundation and is likely to grow steadily thanks to and increase in the gas price.
Ending March 2013, PV Gas earned a whopping net profit of VND2.29 trillion (over $109 million) and held a huge cash amount of VND16 trillion ($762 million). It also paid a cash dividend of up to 30 per cent last year. — VNS