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PetroVietnam Fertilizer leads Saigon Securities' top stocks
PetroVietnam Fertilizer & Chemical Joint-Stock Co. leads the 30 stocks that Saigon Securities Inc. says will benefit the most from slowing inflation in Vietnam, the world's best-performing market in the 3rd quarter.
PetroVietnam Fertilizer (DPM), steelmaker Hoa Phat Group and two oil-services providers top the so-called SSI30 basket, said Nguyen Duc Hung Linh, deputy head of analysis and investment in Hanoi at Vietnam's largest listed brokerage.
The 30 make up more than 60 percent by value of the 311 stocks on the nation's two exchanges.
The 30 companies “have strong fundamentals,” Linh said. “They have gone through the difficult economic conditions in the last few months and they are still growing.”
The VN-Index was the world's best performer in the third quarter, even as the deepening credit crisis fueled a rout that wiped as much as $7.8 trillion from global equities.
The effect of the financial crisis on Vietnam's economy has “not been significant” because links with US credit markets are limited, the government said on its website October 1.
Top picks
Vietnam's central bank raised interest rates three times this year to the highest levels in Asia and restricted credit growth at 30 percent to curb gains in consumer prices. Inflation in the Southeast Asian nation fell in September for the first time since January 2007 to 27.9 percent.
PetroVietnam Fertilizer (DPM), the biggest company by value on the HCMC exchange and a unit of state-run Vietnam Oil & Gas Group, leads Saigon Securities' picks because it has an expanding domestic market that is short of fertilizer supplies, with rising prices, the brokerage said in a report released on October 1.
Hoa Phat Group (HPG), a maker of steel, furniture and refrigeration equipment, whose shares have dropped 20 percent this year, will gain as profit increases 87 percent this year, the report said. PetroVietnam Drilling & Well Services Joint-Stock Co. (PVD) and Petroleum Technical Services Corp. (PVS) are third and fourth on the list of 30, Linh said.
Thanhnien
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