Tuesday, December 11 2018

VietNamNews

VN-Index up as divestment disappoints

Update: December, 09/2017 - 09:00
An investor passes electronic stock boards at Tân Việt Securities Inc. VNS Photo Đoàn Tùng
Viet Nam News

HÀ NỘI – Shares bounced back slightly on Friday on the HCM Stock Exchange but slipped on the Hà Nội bourse, affected by the somber result of the State Capital Investment Corporation’s (SCIC) divestment from Vinaconex.

The VN-Index on the HCM Stock Exchange inched up 0.16 per cent to close Friday’s trade at 940.16 points after a 3.3-per-cent three-day loss.

Many large caps recovered yesterday and lifted the southern market index.

Overall, 15 of the top 30 largest shares by market value and liquidity advanced and 11 declined.

The biggest listed company Vinamilk (VNM) gained 1.13 per cent, settling at VNĐ188,100 (US$8.25) per share, while the real estate giant VinGroup (VIC) and its retail arm Vincom Retail (VRE) increased 1.4 per cent and 2.2 per cent, respectively.

Other leaders also included Masan Group (MSN), up 4.2 per cent; Petrolimex (PLX), up 2.3 per cent; insurer Bảo Việt Holdings (BVH) and budget airline Vietjet, up 1.8 per cent each.

Among the laggards were brewers Sabeco (SAB) and Habeco (BHN), Vietcombank (VCB), Vietinbank (CTG), FPT Corp (FPT) and steelmaker Hòa Phát Group (HPG).

On the Hà Nội Stock Exchange, the HNX-Index edged down 0.63 per cent to end at 113.81 points after a two-day rally.

The disappointing results of the capital divestiture of SCIC from the Việt Nam Construction and Import-Export Corp (VCG), better known as Vinaconex, hurt VCG stock as well as other stocks that are part of SCIC’s divestment plans, including Bình Minh Plastic (BMP) and Tiền Phong Plastics, scheduled for divestment at the end of this year. Investors bought only 5.6 per cent of the VCG shares offered at Friday’s auction.

Vinaconex’s shares dropped by 10 per cent to VNĐ24,800 per share. They had risen 40 per cent in the past month thanks to the SCIC’s divestment scheme. 

Meanwhile, BMP and NTP fell 3.5 per cent and 4.5 per cent, respectively.

“VCG will probably encourage investors to be more rational when looking for opportunities in the State’s divestment shares in the coming time,” Vietnam Investment Securities Co wrote in a report yesterday. “Although the VN-Index recovered in the weekend session, we think the market will continue to see fluctuation and correction after the long rally, at least for the next week.”  

According to analysts at BIDV Securities Company, one positive sign was that large caps had gradually bounced back and supported the market. With the upward momentum of the mid-cap and penny stocks, the medium-term prospect of the market is still positive. Investors may focus in some sensitive market sectors such as banking and real estate.

Liquidity remained modest compared to the previous sessions, with 245.6 million shares worth combined VNĐ5.9 trillion ($259 million) being traded in the two markets. – VNS

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