City shares rise with 4.38 per cent GDP growth (29/6)

[xiuchic]

Shares gained in HCM City this morning after the gross domestic product for the first half of this year was announced to have grown 4.38 per cent compared to the same period last year.

On the HCM City Stock Exchange, the VN-Index edged up 0.54 per cent to 420.42 points. Advancers outnumbered decliners by 127-69.

The VN30, tracking the southern bourse's leading shares in terms of capitalisation and liquidity, added 0.65 per cent to 494.92 points thanks to positive gains of major stocks such as insurer Bao Viet Holdings (BVH) - up 4 per cent, property developer Hoang Anh Gia Lai (HAG) - up 0.7 per cent and Vietcombank (VCB) and food processor Masan (MSN) - both increasing 1 per cent.

Meanwhile, only four stocks retreated.

The overall value of trades, however, dropped 15.3 per cent over yesterday morning's level to just VND406.2 billion (US$19.3 million) on a volume of 24.9 million shares.

On the Ha Noi Stock Exchange, the HNX-Index closed down nearly 0.7 per cent to 70.88 points.

Losers overwhelmed gainers by 113-57.

Only 11.6 million shares changed hands, totalling a 17.6 per cent lower market value of VND128.5 billion ($6 million).

The market will resume trading at 1 pm.

[xiuchic]

Shares gained in HCM City yesterday after the gross domestic product for the first half of this year was announced to have increased by 4.38 per cent compared to the same period last year.

After temporarily halting a five-day losing streak on Thursday, market liquidity during yesterday's session only stood at the average of last week, signalling no significant change, Kim Eng Securities Co analysts said in their daily report.

Hoa Binh Securities Co analyst Nguyen Thi Kieu predicted the short- and medium-term trend was to decline.

In yesterday's session, the gains of the VN-Index were primarily due to the rally of some influential stocks, she said. As trading was meagre on both bourses, the rally did not mean anything.

On the HCM City Stock Exchange, the VN-Index edged up 1 per cent to 422.37 points. Advancers outnumbered decliners by 171-56.

The VN30, tracking the southern bourse's leading shares in terms of capitalisation and liquidity, added 1.22 per cent to 497.70 points thanks to positive gains of major stocks such as insurer Bao Viet Holdings (BVH) and Eximbank (EIB) – both adding 3.8 per cent – Phu My Fertiliser (DPM) up 1.5 per cent, Vietcombank (VCB) up 1 per cent and food processor Masan (MSN) increasing 2.5 per cent.

Meanwhile, only property and entertainment services developer Vingroup (VIC) retreated 0.6 per cent.

The overall value of trades jumped 28.8 per cent over Thursday's level to approximately VND1 trillion (US$19.3 million) on a volume of 55.8 million shares.

Meanwhile, on the Ha Noi Stock Exchange, the HNX-Index closed down 0.4 per cent to 71.07 points.

Only 27.2 million shares changed hands, totalling a 8.3 per cent lower market value of VND275.1 billion ($13 million).

According to Ha Quang Tuyen, head of the General Statistics Office's National Account Department, GDP growth in the last six months of the year must reach 7.28-8.18 per cent if the annual growth target of 6-6.5 per cent was to be achieved.

In addition, credit growth should reach 12-14 per cent, with total payments up 12-13 per cent. The consumer price index would then be 6-7 per cent growth.

[xiuchic]

The VN-Index concluded last week down 0.4 per cent from the previous Friday's close, reaching 422.37 points on the strength of gains late in the week.

The value of trades on the HCM City Stock Exchange averaged around VND852.3 billion (US$40.5 million) per session, slightly higher than in the previous week, while the daily volume of trades averaged 51.2 million shares.

The VN30 Index, tracking the southern bourse's leading stocks, lost 0.5 per cent during the week to close on Friday at just 497.73 points.

On the Ha Noi Stock Exchange, the HNX-Index also retreated by 1 per cent to 71.07 points. Value averaged a meagre VND353.6 billion ($16.8 million) per day on a volume of 37.2 million shares, some 4 per cent below the previous week.

What cash flows there were last week tended to return to rubber, real estate and mining stocks. Subsidiaries and affiliates of engineering firm Lilama and construction firms Song Da and Vinaconex all sank notably amid mixed trading in blue chips. Investors continued to neglect bank shares.

Friday saw the release of national GDP figures for the first six months of the year, showing economic growth at a 4.38-per-cent pace, against global GDP growth predicted to fall this year by 3.5-3.6 per cent.

"A number of banks worldwide are facing lower credit ratings, while GDP growth continues to disappoint investors," commented FPT Securities Co analyst Le Thi Bich Hang.

Although the domestic GDP increase, it was still lower than expected, she noted. In addition, the Performance of Manufacturing Index (PMI) was below 50, showing that the manufacturing sector still faced great challenges.

"The economic picture won't be positive for listed companies to publish profitable business results," Hang said. "Therefore, there is little expectation for a significant recovery."

The horizontal trendline formed at the end of May was strongly controlling the movements of the VN-Index between 415-435 points, she added, a situation that would likely continue this week.