|Investors follow transactions at Bao Viet Securities Company in Ha Noi. — VNS Photo Truong Vi
HA NOI (VNS) — Shares rebounded yesterday after dairy producer Vinamilk, Viet Nam's largest company by market capitalisation, jumped amid reports that a Singapore food and drinks firm offered to buy a 45 per cent stake in it.
On the HCM Stock Exchange, the VN-Index advanced 1.5 per cent to close the session at 611.7 points. It declined 0.8 per cent on Thursday.
In the smaller market in Ha Noi, the HNX-Index recouped 1 per cent to end at 81.9 points after losing 1.4 per cent in the previous session.
Vinamilk's share price soared over 5.1 per cent to close yesterday at VND123,000 (US$5.49) yesterday, ending a two-day fall, following reports in Vietnamese media that Singapore's food and beverage company Fraser and Neave (F&N) has offered to buy a 45.1 per cent stake held by Viet Nam's State Capital Investment Corporation in Vinamilk in a deal worth $4 billion.
F&N denied this report in a filing submitted to Singapore's stock exchange yesterday morning. A Vinamilk spokeswoman was not available for comment.
In a recent submission to the Prime Minister, Vinamilk has suggested the Government should allow the foreign ownership in the dairy company to rise to 100 per cent as the dairy industry is not a sensitive sector and will not affect the country's food security.
"Vinamilk was the main driver of the VN-Index in today's trades," analysts at BIDV Securities Co said.
Vinamilk's market cap reached almost VND147.7 trillion ($6.6 billion) yesterday, accounting for 12.5 per cent of the total market capitalisation of the HCM City's exchange.
According to a BIDV Securities Co's report, Vinamilk contributed over 43 per cent of the overall growth of the VN-Index in October, which climbed from 561 points in early last month to over 607 points by the end of the month. Vinamilk's share price also increased over 17 per cent during this period.
Other large-cap shares also performed well yesterday.
Insurer Bao Viet Holdings (BVH) soared 6.8 per cent, slightly lower than the daily limit of 7 per cent, while software producer FPT Corp (FPT) also increased 6.1 per cent. Other financial shares like Vietcombank (VCB), Vietinbank (CTG), Saigon Securities Inc (SSI) and HCM Securities Corp (HCM) increased between 0.5 per cent and 1 per cent each.
The overall market condition was positive with 42 per cent of 680 trading stocks advanced while only 21 per cent declined.
However, some analysts kept a cautious view about the market outlook.
"Money inflows are focusing on a number of stocks which may not make a solid foundation for the market to go higher in the short-term," analysts at FPT Securities Co wrote in a report.
Market volume decreased nearly 3 per cent from Thursday to reach 162 million shares but value of trades increased over 19 per cent to almost VND3.1 trillion ($138.4 million) on the two exchanges. — VNS