Vietnam Stock Market News

Investors sold heavily soon after the opening bell to book profits, sending the VN-Index 0.31 percent lower in the first session.

The index hovered between positive and negative territories during the second session before finishing the session at 548.36, up 0.28 percent. It then closed the day off at 547.69. The gauge rose 17 percent in August in the exchange’s sixth straight monthly gain.

But losers outnumbered gainers by 92 to 62 while 16 issues remained unchanged. More than 70 million shares were traded.

Nguyen Xuan Minh, chief executive of Ho Chi Minh City-based Vietnam Asset Management Ltd., said, “Results in the first half of 2009 for most listed and large companies whose shares are traded over the counter had a good earnings season.

“Most companies reported very encouraging figures, many beat investors’ expectations by a long mile. Sectors which have done particularly well are those that serve the domestic market and therefore benefited from Vietnam’s improving economic environment since early 2009.

“We were a little concerned initially when the government announced a slowdown in credit growth in the second half of the year as we saw the impact on companies starved of liquidity in 2008. But the recent figures on inflation have given the State Bank of Vietnam some enthusiasm to return the credit growth target to 30 percent for the year. We no longer see this as a potential downside risk to earnings in the second half, and the encouraging macroeconomic rally will remain strong going forward.

“The stock market rally reflects the ongoing recovery picture of Vietnam’s economy. The uptrend will continue in the medium term although there will likely be corrections along the way as is always the case in a market driven largely by retail investors.”

An Pha SG Petrol Joint- Stock Co. led gains among gas distribution companies on the Ho Chi Minh Stock Exchange after the companies raised prices.

Ho Chi Minh City-based An Pha, the biggest-listed gas company on Vietnam’s main bourse, rose 4.9 percent to close at VND17,200, the highest since February 28, 2008. MT Gas Joint-Stock Co., based in the Mekong Delta province of Long An, advanced 4.7 percent to VND13,400, the highest since June 11.

Both companies raised their prices of LPG, or cooking gas, by VND18,000 (US$1) per 12-kilogram  cylinder, effective from Tuesday.

“Fuel prices have been raised so our transportation costs will increase,” Nguyen Quang Trung, general director of MT Gas, said by phone on Tuesday from Ho Chi Minh City.

Vietnam on August 30 raised the price of gasoline for a second time this month as international prices increased.

“We still have stockpiles of gas bought at low prices, so we expect our earnings this year to exceed last year’s as well as the forecasts for this year,” Trung said.

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