|Some leading stocks, notably PetroVietnam Gas (GAS), spearheaded the rally.— File Photo
HA NOI (VNS) — Vietnamese shares tumbled last Friday, but the two indices still added value compared with the previous week.
Some leading stocks, notably PetroVietnam Gas (GAS), spearheaded the rally. GAS increased strongly following news that its mother company, PetroVietnam, discovered the country's largest gas field in the central coast.
In addition, the oil giant's other subsidiaries also posted gains. However, unlike in previous trading days, the rally of these stocks did not attract enough attention to move the entire market forward.
Transactions on speculative stocks last week were less active as a result of increasing selling pressure, sparking more caution from investors. Last Friday, profit-taking was widespread, knocking blue chips down, and the indices declined rapidly.
The VN-Index at the HCM City Stock Exchange increased by one per cent over the previous Friday's session to end at 617.72 points. Transaction value averaged VND2.95 trillion (US$139.1 million) on a daily volume of 170.5 million shares.
Top gainers in HCM City included Thong Nhat Production and Investment (GTN), H.A.I Agrochem (HAI) and Viet Nhat Seafood (VNH).
GTN, which debuted on October 3, jumped up by 38.1 per cent after it announced the sale of nearly 16 per cent of Thong Nhat Co Ltd worth VND27 billion ($1.2 million). HAI climbed by 20.4 per cent as it announced plans of increasing its charter capital from VND174 billion ($8.2 million) to VND1 trillion ($47.1 million).
Meanwhile, VNH rose by 17.4 per cent. Although the company did not release any important information and the increase in its share price was minimal, the trading of shares in seafood companies in general remained active.
Meanwhile, the HNX-Index at the Ha Noi Stock Exchange inched up by 0.14 per cent to 90.45 points. The average value and volume of trades reached VND1.1 trillion ($51.8 million) and 79.1 million shares.
The top gainer in the northern bourse was Hanoi Milk (HNM), which surged by 54 per cent in spite of the absence of any special news about the company.
Foreign investors continued to be net sellers on both bourses, unloading a total margin of nearly VND248 billion ($11.6 million). Their activities affected the VN-Index only on several first sessions last week and had minimal impact towards the end of the week. In the capital city, sales did not target leading shares.
According to Bao Viet Securities Company analyst Nguyen Xuan Binh, the Vietnamese stock market is still attractive to foreign investors, not only in the short term but probably in the next few years. He predicted the domestic market's price-to-earnings ratio to be nine to 13 times higher by the beginning of next year, though this is relatively low compared with that of other Asian markets.
The biggest risk to the flow of foreign capital, he added, was global instability, currently due to political tension in Ukraine and Hong Kong. — VNS