Property firms push shares up

Hanoi (VNA) - Vietnamese shares saw solid gains on November 13 on both local exchanges thanks to good news about the property market which boosted real-estate developers.

The benchmark VN Index on the HCM Stock Exchange gained 0.9 percent to close at 611.27 points and the HNX Index on the Hanoi Stock Exchange inched up 0.6 percent to finish at 81.57 points.

The property company index was up 1.4 percent after property developers such as FLC Group, Vingroup JSC and Kinh Bac City Development Share Holding Corporation announced good news about their businesses.

Vingroup gained 1.4 percent after the company announced it would officially open a new apartment-shopping mall in Hanoi next week. Kinh Bac jumped 3.7 percent after the company reported quarterly revenue of 530 billion VND (23.5 million USD) on November 12, an increase of 47 percent over a year.

Meanwhile, FLC surged 5.2 percent and was the most active stock with more than 21.4 million shares after the company announced its plan to sell new apartments in Hanoi at the end of this month. FLC will sell its new project with a price as low as 37 million VND (1,640 USD) per square metre, which is considered lower than the prices in other projects.

In addition, the market received strong support from plastic producers, who use crude oil as production materials, as the global price fell to four-year low following a statement published by the International Energy Agency (IEA) on November 11.

IEA predicted that global oil price would likely remain around 50 USD a barrel until the end of this decade and not reach 85 USD a barrel until 2040 as global demand would decline by 10 million barrels each day from now to 2040, creating an oversupply in the global oil market.

On November 12, US benchmark crude West Texas Intermediate (WTI) fell 2.7 percent overnight to trade at 41.75 USD a barrel and Brent crude lost 3.8 percent overnight to trade at 44.06 USD a barrel.

The fall of global oil prices helped local plastic producers to cut some of their material costs, boosting their performances on the stock market. The biggest stocks such as Binh Minh Plastic JSC (BMP) surged 6.4 percent, Tien Phong Plastic JSC (NTP) jumped 5.6 percent and Rang Dong Plastic JSC (RDP) gained 3.7 percent.

Both local exchanges traded nearly 209 million shares, worth 3.28 trillion VND (145.8 million USD) – an increase of 8 percent from the previous session.-VNA