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VietNamNews

Property firms push shares up

Update: November, 14/2015 - 09:06
Investors watch a stock trading session at Saigon Securities Inc in Ha Noi. — VNS Photo Doan Tung

HA NOI (VNS)— Vietnamese shares saw solid gains yesterday on both local exchanges thanks to good news about the property market which boosted real-estate developers.

The benchmark VN Index on the HCM Stock Exchange gained 0.9 per cent to close at 611.27 points and the HNX Index on the Ha Noi Stock Exchange inched up 0.6 per cent to finish at 81.57 points.

The property company index yesterday was up 1.4 per cent after property developers such as FLC Group, Vingroup JSC and Kinh Bac City Development Share Holding Corporation announced good news about their businesses.

Vingroup gained 1.4 per cent after the company announced it would officially open a new apartment-shopping mall in Ha Noi next Friday. Kinh Bac jumped 3.7 per cent after the company reported quarterly revenue Thursday of VND530 billion ($23.5 million), an increase of 47 per cent over a year.

Meanwhile, FLC surged 5.2 per cent and was the most active stock with more than 21.4 million shares after the company announced its plan to sell new apartments in Ha Noi at the end of this month. FLC will sell its new project with a price as low as VND37 million ($1,640) per square metre, which is considered lower than the prices in other projects.

In addition, the market received strong support from plastic producers, who use crude oil as production materials, as the global price fell to four-year low following a statement published by the International Energy Agency (IEA) on Wednesday.

IEA predicted that global oil price would likely remain around $50 a barrel until the end of this decade and not reach $85 a barrel until 2040 as global demand would decline by 10 million barrels each day from now to 2040, creating an oversupply in the global oil market.

On Thursday, US benchmark crude West Texas Intermediate (WTI) fell 2.7 per cent overnight to trade at $41.75 a barrel and Brent crude lost 3.8 per cent overnight to trade at $44.06 a barrel.

The fall of global oil prices helped local plastic producers to cut some of their material costs, boosting their performances on the stock market. The biggest stocks such as Binh Minh Plastic JSC (BMP) surged 6.4 per cent, Tien Phong Plastic JSC (NTP) jumped 5.6 per cent and Rang Dong Plastic JSC (RDP) gained 3.7 per cent.

Both local exchanges traded nearly 209 million shares, worth VND3.28 trillion ($145.8 million) – an increase of 8 per cent from Thursday. — VNS


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