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Rubber stocks drop on falling rubber prices, demands
Da Nang Rubber Joint-Stock Co., Vietnam’s third-biggest listed rubber company, on Monday dropped the most among local rubber stocks in Ho Chi Minh City as global natural rubber prices and demand fell.
Da Nang Rubber slid by the daily limit of 5 percent, the most since June 22, to close at a two-week low of VND85,500 on the Ho Chi Minh Stock Exchange.
“World rubber prices have been falling and global demand for latex is not very promising,” said Trinh Vinh Quyen, an analyst at Ho Chi Minh City-based DongA Securities Co.
Natural rubber futures dropped for the first time in three days on concern Japanese industrial production recovery may not be sustained as consumption weakened. Japan’s retail sales slid 2.8 percent in May from a year earlier, the Trade Ministry said Monday in Tokyo. Economists surveyed by Bloomberg News predicted a 2.6 percent drop.
Earlier this month, Da Nang Rubber said pretax profit through May was more than double its full-year target.
Earnings rose to VND122 billion (US$6.8 million), from VND33.7 billion in the same period last year, Nguyen Thi Minh Thu, Da Nang Rubber’s communication officer, said on June 19. The company’s full-year target is VND52 billion, she said.
“Last year’s economic crisis was difficult for us because production costs were high, demand dropped and orders declined, so we wanted to be cautious this year by setting similar targets to 2008,” she said.
Tay Ninh Rubber Joint-Stock Co., the nation’s second-largest listed rubber product maker, dropped 4.1 percent Monday, to a one-week low of VND44,800.
In the first quarter of this year, Tay Ninh Rubber’s net income rose 8 percent year-on-year to VND28 billion ($1.6 million).
Dong Phu Rubber Joint-Stock Co., Vietnam’s biggest listed producer, Monday fell 2.4 percent, to VND44,800. Hoa Binh Rubber Joint-Stock Co. declined 0.8 percent, to VND36,300. Thong Nhat Rubber Joint-Stock Co. slid 0.7 percent to VND14,600.
The VN-Index, Vietnam’s main stock index, lost 0.95 points, or 0.21 percent, on Monday to close at 460.42. Declines outnumbered advances by 107 to 36.
thanhnien, bloomberg
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