Investors at Bao Viet Securities Company. (Source: VNA) Hanoi (VNA) - Vietnamese shares remained mostly positive in the two localmarkets on April 19, driven by better investor confidence in particular groupsof stocks with supporting business information.
Thebenchmark VN Index on the HCM Stock Exchange rose 0.26 percent to close at716.77 points, totaling a gain of 0.8 percent after the last two sessions.
TheHNX Index on the Hanoi Stock Exchange ended at 89.11 points, almost unchangedfrom April 18’s closing level of 83.12 points.
Markettrading liquidity declined from April 18’s numbers with more than 203.5 millionshares being exchanged, worth 3.64 trillion VND (162.1 million USD).
Thestock market on April 19 saw a strong boost from fertilisers on expectationsthat the ministry of industry and trade will soon approve their proposal on theprotectionist policy for some of the imported fertiliser products.
Biggestgainers among fertiliser stocks were PetroVietnam Fertiliser & Chemicals(DPM), PetroVietnam Ca Mau Fertilizer (DCM) and Lam Thao Fertilisers andChemicals (LAS) as they hit the daily trading limit.
DPMsurged 6.9 percent, DCM soared 6.8 percent and LAS jumped 9.7 percent.
Accordingto the General Customs Department, Vietnam in 2016 imported 1.1 billion USDworth of 4.15 million tonnes of fertiliser products. The ministry of industryand trade has forecast that a similar proportion of fertiliser imports would bereached in 2017, mainly from China.
Analystsat Bao Viet Securities Company (BVSC) said in their note that if theprotectionist policy is approved, local fertiliser companies will see stronggrowth as they have less competition from imported products.
However,investors are suggested to wait for the official decision from the ministrybefore making purchases in fertiliser stocks, BVSC analysts said.
Sugarproducers were also in the focus yesterday as a M&A deal between the twoproducers Bien Hoa Sugar JSC (BHS) and Thanh Thanh Cong Tay Ninh JSC (SBT) willbe discussed at the two firms’ upcoming annual shareholder meetings.
BHSclosed up 6.9 percent, hitting the daily trading limit, while SBT was flat.
Inaddition, the stock market was supported by positive performances from someother large-cap stocks, including dairy producer Vinamilk (VNM), FarosConstruction (ROS) and Vietcombank (VCB).
Onthe opposite side, bank and energy stocks remained negative. Five of the ninelisted banks declined while energy companies like PetroVietnam Gas (GAS) andPetroVietnam Technical Services (PVS) remained in the negative territory on thevolatile crude prices.-VNA
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