Monday, August 31, 2009

VN-Index goes past 540 despite fuel price hikes, Asian losses

The Ho Chi Minh Stock Exchange Monday ignored increases in fuel prices and losses in Asian markets, rising 1.9 percent to 546.78, the highest since September 4.

Of the VN-Index's 170 members, 143 increased and 11 decreased while 16 were unchanged.

Turnover shot up to nearly 70 million shares worth VND3 trillion (US$168.3 million) from last Friday's 56 million worth 2.2 trillion.

In Hanoi, the HNX-Index climbed 2.7 percent to finish at 172.17.

Elsewhere in Asia, Chinese shares closed down 6.74 percent, Hong Kong shares closed 1.86 percent lower, and Japanese stocks ended down 0.4 percent.

Ngo Huu Hung, chief analyst at Ho Chi Minh City-based Dai Viet Securities, said, "Positive news showing economic recovery in the international markets have heartened Vietnamese investors lately and will continue supporting gains in the local stock market.

"The market may have some days with declines over the next few weeks, but its uptrend will definitely be extended into the next few months, as we have about one more month to go until the time when companies start to release earnings results, and they are expected to be good.

"As for the health of the domestic economy, there has been positive news lately including slowing inflation which may point to the government loosening monetary policy, and that will also support gains in the local market.

"I would expect the VN-Index to reach 600 by the end of October with rising daily trading volumes."

Vietnam Dairy Product Joint-Stock Co. (VNM), the biggest listed company on the exchange, advanced 1.3 percent to VND158,000. The Ho Chi Minh City-based company plans to buy back 15,320 shares, starting Monday, according to a statement on the exchange's website. The purchase will be completed by December 31.

Phuoc Hoa Rubber Co. (PHR), which operates a rubber plantation, rose 0.6 percent to VND48,300. The company's chief accountant Duong Van Khen will buy 50,000 shares, starting Monday to raise his holdings to 0.06 percent from zero, according to a statement filed on the exchange's website.

Saigon Fuel Joint-Stock Co. (SFC), which sells gasoline and other petroleum products, jumped 4.9 percent, the biggest advance since July 24, to VND85,000.

The government allowed oil product importers to raise their retail fuel prices by up to 8.3 percent on Sunday.

Source: Thanh Nien, Bloomberg

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