Real estate leads VN rebound

Vietnamese shares rebounded on October 22, boosted higher by real estate firms as investors eyed solid third-quarter earnings prospects of these companies.

On the HCM Stock Exchange, the VN-Index rose 0.8 percent to close the session at 595.1 points. The Index decreased 0.7 percent over the previous two sessions.

On the smaller bourse in Hanoi, the HNX-Index also snapped a two-day decline with a gain of 0.8 percent, sending it to a two-month high at 81.4 points.

The overall market condition was positive with nearly 41 percent of total 679 trading stocks advancing while only 21 percent declined.

Real estate developer Tan Tao Investment Industry Corp (ITA) was the biggest gainer with a rise of 6.3 percent while others including FLC Group (FLC), Hoang Quang Consulting-Trading-Service Real Estate Corp (HQC), Ninh Van Bay Travel Real Estate Co (NVT) and Duc Long Gia Lai Group (DLG) increased between 1.5 percent and 3.8 percent.

"Investors are bullish on the earnings prospects of real estate companies in the third quarter," said Nguyen Thanh Tung, an analyst at Hanoi-based Royal Securities Co.

Tung said the second half of the year was the time that many property firms put revenues of important projects in their accounts.

FLC estimated its third-quarter revenue at nearly 1.3 trillion VND (58 million USD), a 250-percent rise year-on-year while pre-tax profit was projected at 300 billion VND (13.4 million USD), up 240 percent over the same period of last year.

Meanwhile, HQC also showed confidence in completing its yearly targets of 3.23 trillion VND (144.2 million USD) in revenue and 320.2 billion VND (14.3 million USD) in net profit by this quarter.

HQC, ITA and FLC were also the most active stocks nationwide with each seeing 5 to10 million shares traded.

After a two-day fall, bank stocks also rebounded on October 22. Seven of nine listed banks posted gains while none declined.

Large-cap banks like Vietcombank (VCB), Sacombank (STB), Eximbank (EIB), Bank for Investment and Development of Viet Nam (BID) and Military Bank (EIB) edged up between 0.4 and 2.1 percent.

Overall liquidity decreased slightly with a total of nearly 135 million shares worth 2 trillion VND (89.3 million USD) being traded in the two markets, down 4 percent in volume and 11 percent in value compared with the levels on October 21.-VNA