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Stocks gain on anticipation of fuel-price cut, earnings
Vietnam's benchmark stock index gained on anticipation of fuel-price cuts even as strong nine-month earnings reports by companies eased concern the credit crisis would crimp profits.
The VN-Index, a measure of 160 companies on the Ho Chi Minh Stock Exchange, gained for a second day, climbing 7.8 points, or 2 percent, to close at 397.15.
Vietnam’s stock exchange and Japan's Nikkei 225 Stock Average were the only two benchmark indexes in Asia that gained Wednesday.
“The macroeconomic picture seems good because fuel prices may be cut further and inflation is slowing down,'' said Nguyen Thanh Binh, head of analysis at Hanoi-based Vietnam International Securities Co., known as VISecurities. September inflation rose 27.9 percent from a year earlier, down from 28.3 percent yearon-year in August, the first decline in the rate since January 2007.
Vietnam National Petroleum Corp., supplier of 70 percent of the country's fuel, known as Petrolimex, would “adjust” its gasoline price in accordance with the declining global price of oil, Vuong Thai Dung, deputy chief executive officer, said in an interview with Thoi Bao Kinh Te Vietnam. Petrolimex has reduced gasoline prices three times since August 14.
Crude oil prices, down 9.4 percent from a year ago, have dropped 47percent from the record US$147.27 a barrel on July 11 on the New York Mercantile Exchange. The contract was recently at $77.90 in after-hours trading.
Hoa Phat Group Joint-Stock Co., a Vietnamese steel and real-estate company, advanced for a second day, gaining VND2,000, or 4.9 percent, to close at VND42,800. The company, based in the northern Hung Yen province, said net profit climbed 163 percent to VND1.08 trillion ($65 million) and sales rose 71 percent to VND6.65 trillion on increased sales in the first nine months.
“There are obviously some investors who continue to think that incremental positive macro news is a good reason to buy the market,” said Adrian Cundy, head of research for VinaSecurities Joint-Stock Co. in HCMC.
“The market's rally may continue for the next few days as investors are getting more optimistic about the country's macro economy,” Vu Viet Ky, a HCMC-based brokerage manager at Mirae Asset Securities, said Wednesday.
“Many shares have become very cheap after recent drops so some investors have also increased buying while others halted selling.
“However, given the fact that Vietnamese investors have started watching the world stock markets more closely than they used to, declines in international markets may hurt their optimism and confidence. So, Vietnamese stocks' uptrend may not last long.”
Thanhnien
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