Shares up on Govt’s exit of big firms

HÀ NỘI – Shares advanced yesterday on the two national stock exchanges, buoyed by investor expectations of a specific roadmap for the Government to sell its capital proportions in many big listed companies.

On the HCM Stock Exchange, the VN-Index increased 0. 四 per cent to  六 六0. 五 points. It was down 0. 二 per cent on Tuesday.

On the smaller exchange in Hà Nội, the HNX-Index also added 0. 四 per cent to close yesterday at  八 三. 八 points.

The Government and ministries yesterday had a meeting to discuss the plan of divesting State capital in  一0 enterprises in which the State Capital Investment Corporation (SCIC) is representing and operating.

In May  二0 一 五, the Government requested SCIC draw a roadmap for selling State holdings in  一0 big enterprises, of which eight businesses are listing shares on the two national exchanges with a combined market capitalisation of around US$ 四. 五 billion.

Six of these eight companies gained value yesterday after the information. Shares in Bình Minh Plastic (BMP) and Tiền Phong Plastic (NTP) were the biggest gainers, with each rising  七 per cent.

Others including dairy firm Vinamilk (VNM), software producer FPT Corp (FPT), Vietnam National Reinsurance (VNR) and Bảo Minh Insurance (BMI) each increasing between  一. 二 per cent and  六. 五 per cent.

Only Sa Giang Import Export (SGC) declined  九. 四 per cent and Hà Giang Mineral and Mechinics (HGM) closed unchanged.

“This is an investment for all investors,” said Nguyễn Minh Ngọc, director of the Corporate Finance Department at Bảo Việt Securities Co.

Ngọc hailed the Government’s policy of selling its holdings in the companies in which the State does not need to hold major stakes. This loosened State control on the companies and made them more appealing to investors.

Việt Nam’s stock market has rallied  一 三 per cent this year amid optimism the Government will ease regulations for foreign investment. Last month, the market watchdog State Securities Co妹妹ission allowed Vinamilk to remove the  四 九-per-cent foreign ownership cap on its stocks, spurring speculation that more companies will follow.

Foreign investors purchased shares worth a total net value of $ 三 五 million on the local stock market in the first seven months of this year, supporting the market uptrend since the beginning of the year, data of the National Financial Supervisory Co妹妹ission showed.

Liquidity decreased slightly from the previous session, totaling  一 六 六 million shares worth a total value of VNĐ 三. 三 三 trillion, down  一 八. 二 per cent in volume and  一 四. 六 per cent in value from Wednesday’s figures. – VNS