F&B stocks push Vietnam market upwards

By Hung Le   January 7, 2019 | 06:12 am PT
F&B stocks push Vietnam market upwards
An investor is seen behind a stock market screen at a securities company in Hanoi. Photo by Reuters/Kham
Strong performances by food and beverage stocks, an average rise of 3.88 percent, in the first session of the week pushed the VN-Index up to 889.64.

The first session of the week on Monday started on a positive note based on optimism from growing stocks in many parts of the world.

At the end of the session, the country’s benchmark stock index, VN-Index rose by 8.74 points to 889.64, while HNX-Index on the Hanoi Stock Exchange gained 1.08 points to close at 101.93.

Blue-chips saw strong recovery in the Monday session. A major contributor to the rise of the VN-Index on Monday was Vinamilk (VNM), the largest dairy company in Vietnam, which saw a price increase of 4.1 percent to VND131,000 ($5.66) per share.

Other large cap stocks such as SBC (Sabeco, Vietnam’s largest brewery), VJC (VietJet Air, the country’s largest low cost carrier), and VIC (Vingroup, the biggest domestic private company), also contributed to the growth of the stock index.

Two major groups: banking and oil and gas stocks, continued to maintain good momentum as members of these groups saw parallel rises across the stock market. For instance: BID (BIDV Bank) increased by 2.4 percent, and GAS (PetroVietnam Gas) increased by 2.1 percent.

However, market liquidity continued to be low as investors remained cautious.

Bernard Lapointe, head of research of Rong Viet Securities, told Bloomberg recently that he was optimistic but not too optimistic about the market this year. He expects the VN-Index to stay within the 900-1,000 points range until the end of 2019.

Meanwhile, Michel Tosto, head of Institutional Sales and Brokerage of Viet Capital Securities, predicted that the VN-Index could reach 1,060 points by the end of 2019.

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