Friday, December 14 2018

VietNamNews

Sabeco slump slows down shares

Update: December, 20/2017 - 09:00
Investors at Artex Securities Co’s trading floor. The VN-Index dropped 0.7 per cent on Tuesday’s trade on slump of brewer Sabeco. - Photo kinhtedothi.vn
Viet Nam News

HÀ NỘI – Shares declined on the two national stock exchanges on Tuesday, dragged by the slump of brewer Sabeco, but cash flow remained strong which opened an opportunity for a recovery in the next session.

The benchmark VN-Index on the HCM Stock Exchange edged down 0.69 per cent to close at 951.42 points after rising 2.5 per cent on Monday.

On the Hà Nội Stock Exchange, the HNX-Index decreased 0.31 per cent to end the trade at 113.36 points. The northern market index increased 1.9 per cent on Monday.

The collapse of Sabeco (SAB) and other major large caps pulled the market down.

Contrary to Vinamilk (VNM) which rose after successful divestment of State Capital Investment Corporation, shares of Sabeco hit the floor price of a 7-per-cent drop on the HCM City bourse despite the Ministry of Industry and Trade selling the entire offering of 53.6 per cent of Sabeco’s capital on Monday’s afternoon.

Sabeco’s shares closed at VNĐ287,600 a share (US$12.61) per share, a 10 per cent discount of the VNĐ320,000 per share sold to investors in the auction. The third largest shares by market value, Sabeco’s slump harmed overall market conditions.

Also on the defensive were many large-cap stocks such as Vinamilk (VNM), down 1 per cent; PV Gas (GAS), down 2.3 per cent; Vietinbank (CTG), down 2 per cent and lender BIDV (BID), down 1 per cent.

Seventeen of the top 30 largest shares by market value and liquidity on the HCM Stock Exchange lost value and only 10 advanced. Gainers included FLC Faros Construction (FLC), Petrolimex (PLX), insurer Bảo Việt Holdings (BVH), budget airline Vietjet (VJC) and steelmaker Hòa Phát Group (HPG).

According to BIDV Securities Co (BSC), stocks with good expected last-quarter business earnings such as VJC and HPG, increased positively and supported the market.

“We believe the market will quickly recover in the upcoming sessions as liquidity is gradually recovering in the Q4 business results reporting period,” BSC’s analysts wrote in a Tuesday report.

A total of 283 million shares worth a combined VNĐ6.4 trillion ($280.7 million) were traded on Tuesday on the two exchanges, down 8.4 per cent in trading volume but up 3.2 per cent in value compared to the previous sessions. – VNS

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