Friday, November 16 2018

VietNamNews

Strong profit growth lifts local stocks

Update: November, 01/2018 - 07:00
Several investors at Saigon Securities Inc’s office in Hà Nội. The Vietnamese stock market boomed on Wednesday thanks to rocketing corporate profit growth in the third quarter. — VNS Photo Đoàn Tùng
Viet Nam News

HÀ NỘI — Outstanding Q3 corporate earnings reports helped Vietnamese stocks shoot up on Wednesday and lifted the benchmark VN Index to near the 915-point level.

Việt Nam’s benchmark VN Index on the Ho Chi Minh Stock Exchange advanced 2.93 per cent to end at 914.76 points.

Wednesday’s recovery helped the benchmark recoup more than a quarter of its 8.53 per cent loss over the previous nine sessions.

The HNX Index on the Hà Nội Stock Exchange jumped 3.57 per cent to close at 105.35 points.

The northern market index grew by 0.54 per cent on Tuesday after having fallen sharply by 6.41 per cent over six consecutive days.

Trading liquidity boomed with more than 255 million shares being traded on the two exchanges, worth VNĐ7.53 trillion (US$334.6 million).

Trading figures on Wednesday were up by nearly 50 per cent in volume and nearly 120 per cent in value day-on-day.

Prop-ups in large-cap corporations’ Q3 earnings reports boosted market sentiment and resulted in the strong growth of the indices.

“The market bounced back in the beginning and kept rallying with stronger momentum towards the last minutes,” Bảo Việt Securities JSC (BVSC) said in its Wednesday report.

“The market breadth was positive” and “investors were no longer cautious and turned optimistic on expectations for a market’s short-term recovery,” the company added.

Among the 30 largest listed firms by market capitalisation, property developer Vingroup (VIC) reported its pre-tax profit in the third quarter jumped 72 per cent year on year to VNĐ8.8 trillion.

Vingroup’s retail arm Vincom Retail (VRE) and high-end real estate firm Vinhomes (VHM) announced their Q3 pre-tax profits shot up 55 per cent and 176 per cent to VNĐ675.5 billion and VNĐ5.1 trillion.

Vingroup shares rose slightly 0.6 per cent, while shares of Vincom Retail and Vinhomes soared 5.7 per cent and 6.9 per cent, respectively.

In the oil and gas industry, PetroVietnam Drilling and Well Services (PVD) recorded a four-fold increase in Q3 net profit, which reached VNĐ112 billion.

The company shares surged 6.7 per cent.

Shares of budget carrier Vietjet (VJC) advanced 6.1 per cent after the company reported a 60 per cent Q3 pre-tax profit growth, which touched VNĐ1.71 trillion.

Other large-cap stocks that were also boosted by their impressive Q3 earnings reports included insurance-finance group Bảo Việt (BVH), steel producer Hòa Phát (HPG) and the Vietnam Electrical Equipment Joint Stock Corporation (GEX).

Last week, Vietinbank (CTG), the Bank for Investment and Development of Vietnam (BID), Techcombank (TCB) and digital retailer Mobile World Corporation (MWG) also announced their official Q3 earnings reports, which were considered quite positive.

Earnings reports helped large-cap firms lift the VN30 Index up 3.15 per cent to 901.57 points at the end of the day with 27 of the 30 stocks in the basket ending in the positive territory.

The market is expected to extend growth on Thursday and head to test the 940-950 point range in the short term, BVSC forecast. — VNS

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