Saturday, December 15 2018

VietNamNews

Shares move up in the week’s last session

Update: March, 31/2018 - 05:00
Investors track trades on the HCM City-based Maybank KIM ENG Securities Co’s trading floor. — VNA/VNS Photo Hoàng Hải
Viet Nam News

HÀ NỘI — After struggling in the morning, the market accelerated upward in the afternoon session on Friday as real estate stocks and petroleum remained upbeat.

The VN Index on the HCM Stock Exchange advanced 0.64 per cent to close at 1,174.46 points in the last trading of the week. The Index edged down 0.44 per cent on Thursday, after advancing 1.6 per cent in the previous three days.

The HNX Index on the Hà Nội Stock Exchange increased 0.44 per cent to end at 132.46 points. It closed off 0.51 per cent in the previous session.

More than 249 million shares, worth VNĐ6.9 trillion (US$302 million), were traded on the two local bourses.

Market breadth was quite balanced, with 284 gaining shares, 202 declining ones and 255 stocks ending flat.

The UPCoM Index on the Unlisted Public Company Market moved up 0.76 to close at 60.66 points. The index gained 0.77 per cent in the previous session.

Real estate stocks drove the market up, with Vingroup (VIC) and No Va Land Investment Group Corporation (NVL) up 1.9 and 4.4 per cent, respectively.

Petroleum stocks also performed well, with prominent names like PetroVietnam Gas Joint Stock Corporation (GAS), Việt Nam National Petroleum Group (PLX) and PetroVietnam Drilling & Well Services Corporation (PVD) advancing.

Large-cap stocks under-performed, as 17 of the 30 largest stocks by market capitalisation and liquidity in the VN30 Index increased, pulling the large-cap index up 0.73 per cent to 1,153.08 points.

Foreign investors today were net buyers of VNĐ352.2 billion on HOSE, focusing on food processor Vĩnh Hoàn Corporation (VHC) (VNĐ75.6 billion), Masan Group (MSN) (VNĐ 66.1 billion) and property developer Vingroup (VIC) (VNĐ 61.3 billion). In addition, they bought a net buy of VNĐ3.16 billion on the Hà Nội Stock Exchange.

According to Bảo Việt Securities (BVSC), after a week of fluctuations, VN-Index is expected to send clearer signals next week. However, cash flow contraction reflected investors’ caution.

“We think VnIndex is still at high risk of a short-term correction,” BVSC said in its daily report.

Hapro IPO

Also on Friday, the Vietnamese government raised over VNĐ980 billion by selling a 34.51 per cent stake in the state-run trading and retailing firm Hà Nội Trade Corporation (Hapro) in its initial public offering (IPO) on the Hà Nội Stock Exchange.

The proceeds surpassed the government’s expectations of VNĐ972.8 billion from the IPO.

The divestment of the company is the latest in Việt Nam’s broader privatisation programme to increase efficiency and performance of state-owned enterprises.

With more than 40 subsidiaries under its belt, Hapro operates a chain of supermarkets and convenience stores and owns many land plots and properties at prime locations, increasing its attractiveness for investors.

Nearly 364 investors including two organisations and 344 individuals registered to buy the 76 million shares that were offloaded in the auction with the highest winning price of VNĐ20,000 apiece.

Hapro has charter capital of VNĐ2.2 trillion. Following the equitisation plan, the state will not hold any shares in Hapro after equitisation.

According to Vietnamese regulations, any state-owned company has to list its shares within one year after its IPO.

In 2017, Hapro’s net revenue was VNĐ1.93 trillion, down 17 per cent year on year, while its pre-tax profit was down 8 per cent at VNĐ11 billion. The privatisation plan for Hapro was approved by deputy Prime Minister Vương Đình Huệ last December. — VNS

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