Vietnamese stocks on rebound

Hanoi (VNA) - Vietnamese shares bounced back on both local exchanges on April 5, led by the food and beverage sector.

The benchmark VN Index on the HCM Stock Exchange rose 0.8 percent to close at 560.32 points, ending a three-day loss of 2.5 percent.

The HNX Index on the Hanoi Stock Exchange added 0.5 percent to finish at 78.89 points. The northern index has increased by 0.5 percent in the last two trading days.

The markets were lifted by the food and beverage sector, led by dairy firm Vinamilk and food producer Masan Group, on positive news about their businesses.

Investor confidence in fairy firm Vinamilk rose after the company announced it will sell seven of its businesses, including a real-estate brokerage, in order to raise foreign capital for the company. At the end of the trading session, Vinamilk (VNM) gained 2.2 percent in value.

On April 4, Food and beverage producer Masan Group (MSN) announced a net profit of 2.5 trillion VND (112.3 million USD) in 2015, an increase of 25 percent from the previous year. MSN increased by 0.7 percent on April 5.

Truck dealer Hoang Huy Investment Services JSC (HHS) and financial firm FIT Investment JSC (FIT) also made gains, after the two companies planned to buy back shares from stockholders. Both companies’ stocks surged 6.4 percent and 5.9 percent, respectively.

Meanwhile, Sai Gon Securities Incorporation (SSI), HCM City Securities Corporation (HCM) and VNDirect Securities Corporation (VND) drove up the brokerage sector, after these three companies ranked among the top four leading brokerage companies in Vietnam. SSI was up 1.9 percent on April 5. HCM increased by 2.1 percent, and VND jumped 4.5 percent.

Other brokers also made good gains, including MB Securities Corporation (MBS), Kim Long Securities Corporation (KLS) and Sai Gon-Hanoi Securities Corporation (SHS).

In addition, markets advanced as investors tried to buy stocks that have declined to more attractive price levels recently.

Among those stocks, seafood company Hung Vuong JSC (HVG) jumped 3.1 percent after slumping 22 percent in eight previous sessions. Binh Minh Plastic JSC (BMP) gained 2.8 percent after falling 5.9 percent during five previous sessions. And software producer FPT Corporation (FPT) edged up 0.4 percent, from a five-day decline of 2.5 percent.

On the other hand, PetroVietnam Coating Corporation (PVB) weighed on the energy sector, slipping 5.9 percent, after the company said it will propose that shareholders approve a targeted net profit of only 5 billion VND for this year - which equals just four percent of last year’s performance.

Both local markets traded more than 190 million shares worth 2.77 trillion VND (123.2 million USD), an increase of 28.6 percent from the previous day’s trading value.-VNA