Finding bright spots amid gloom

Update: December, 08/2011 - 10:01

HAØ NOÄI — The market has little prospects to grow in the short term but there are still opportunities for investors, including Ñaø Naüng Rubber Co (DRC) and PetroVietnam Southern Gas (PGS), say FPT Securities Co analysts.

“Ñaø Naüng Rubber had positive performance in the first nine months of this year despite economic difficulties and rising input prices,” said analyst Nguyeãn Ngoïc Tuaán.

DRC had earned VNÑ1.97 trillion ($92.5 million) by the end of the third quarter, 85.5 per cent of the entire year’s target, and posted a profit of VNÑ139 billion ($6.5 million), 92.7 per cent of the target. It also had higher earnings-on-assets and earnings-on equity ratios than its competitors, and there was potential for the company to increase its margins, Tuaán said.

DRC’s new plant in the central city of Ñaø Naüng was also expected to begin operations next year. The plant was built at a cost of about VNÑ2.4 trillion ($113 million), 70 per cent of which came from financing.

The companies’ debt load therefore rose last year but remained low compared to other companies, Tuaán said.

“DRC has a long-term potential appropriate for a value investment portfolio,” he said.

DRC shares yesterday tracked overall market trends and closed down by 1.1 per cent to VNÑ18,700 per share after two weeks of gains.

Meanwhile, PGS offered advantages in terms of resources from its parent company – PetroVietnam Gas Corporation – and financing from PetroVietnam Finance (PVF), said analyst Traàn Quang Vinh.

PGS currently holds a 33-per-cent of the southern gas market, and aims to increase this to 50 per cent by 2015.

“Profitability indicators for the share are better than for other firms, and its share price has been increasing for the past six months,” Vinh said. He recommended buying this stock when it hit around VNÑ20-23,000. Yesterday, it declined to a close of VNÑ24,000 per share.

Shares on the HCM City Stock Exchange lost ground overall yesterday, with trades sluggish on both of the nation’s stock exchanges.

On the HCM City bourse, the VN-Index closed at 387.21 points, a slump of 0.77 per cent from Tuesday’s session. Nearly 31 million shares changed hands, pulling the value of trades down 19.6 per cent from the previous day to VNÑ406.7 billion (US$19.1 million). By the closing bell, advancers had outnumbered gainers by 133-81.

Blue chips witnessed a harsh day with only Sacombank (STB) out of the 10 leading shares by capitalisation posting gains. STB was also the most-active share on the HCM City Stock Exchange, with over 2.6 million traded.

On the Haø Noäi Stock Exchange yesterday, the HNX-Index closed up by 0.43 per cent to 62.51 points. Trades slowed to a value of just VNÑ245.2 billion ($11.5 million) on a volume of 26.2 million shares, as losers overwhelmed gainers by 174-59.

With three million shares changing hands, VNDirect Securities Co (VND) emerged as the most-active share nationwide. — VNS