Investors follow transactions at Bao Viet Securities Company in Ha Noi. (Photo: VNA) Hanoi (VNA) - Shares rebounded on November 3 after dairy producer Vinamilk, Vietnam's largest company by market capitalisation, jumped amid reports that a Singapore food and drinks firm offered to buy a 45 percent stake in it.
On the HCM Stock Exchange, the VN-Index advanced 1.5 percent to close the session at 611.7 points. It declined 0.8 percent on October 29.
In the smaller market in Hanoi, the HNX-Index recouped 1 percent to end at 81.9 points after losing 1.4 percent in the previous session.
Vinamilk's share price soared over 5.1 percent to close at 123,000 VND (5.49 USD) on November 3, ending a two-day fall, following reports in Vietnamese media that Singapore's food and beverage company Fraser and Neave (F&N) has offered to buy a 45.1 percent stake held by Vietnam's State Capital Investment Corporation in Vinamilk in a deal worth 4 billion USD.
F&N denied this report in a filing submitted to Singapore's stock exchange on November 3 morning. A Vinamilk spokeswoman was not available for comment.
In a recent submission to the Prime Minister, Vinamilk has suggested the Government should allow the foreign ownership in the dairy company to rise to 100 percent as the dairy industry is not a sensitive sector and will not affect the country's food security.
"Vinamilk was the main driver of the VN-Index in today's trades," analysts at BIDV Securities Co said.
Vinamilk's market cap reached almost 147.7 trillion VND (6.6 billion USD) on November 3, accounting for 12.5 percent of the total market capitalisation of the HCM City's exchange.
According to a BIDV Securities Co's report, Vinamilk contributed over 43 percent of the overall growth of the VN-Index in October, which climbed from 561 points in early last month to over 607 points by the end of the month. Vinamilk's share price also increased over 17 percent during this period.
Other large-cap shares also performed well on November 3.
Insurer Bao Viet Holdings (BVH) soared 6.8 percent, slightly lower than the daily limit of 7 percent, while software producer FPT Corp (FPT) also increased 6.1 percent. Other financial shares like Vietcombank (VCB), Vietinbank (CTG), Saigon Securities Inc (SSI) and HCM Securities Corp (HCM) increased between 0.5 percent and 1 percent each.
The overall market condition was positive with 42 percent of 680 trading stocks advanced while only 21 percent declined.
However, some analysts kept a cautious view about the market outlook.
"Money inflows are focusing on a number of stocks which may not make a solid foundation for the market to go higher in the short-term," analysts at FPT Securities Co wrote in a report.
Market volume decreased nearly 3 percent from October 29 to reach 162 million shares but value of trades increased over 19 percent to almost 3.1 trillion VND (138.4 million USD) on the two exchanges.-VNA
