June 7: Vietnam Stocks Rise on Fuel Price Cut

The benchmark VN Index added 8.02 points or 1.88% to 434.41. Volume fell 22.08% to 71.3 million shares worth of VND1.14 trillion, however, the cash market volume rose sharply today.

Put-through trading contributed 7.85 million shares worth VND245.77 billion.  Of note, we saw large volume deal in the put through today of 3.4 million STB shares changed hands at VND25,000 each.

The market breadth was broadly positive on the primary bourse where 235 stocks advanced, 40 declined, 33 closed unchanged.

The VN30 Index rose 5.3 points, or 1.05%, to 509.41. Amongst its 30 members, 23 stock rallied, 3 lost and 4 unchanged.

The market opened in the green with 3.17 million shares changed hands. Buyers were more willing to take risks. Profit takers were also active in early trade, however, buying interest was firm which helped support the market throughout the day.

Market resumed the afternoon session with stronger demand and share prices went up steadily. Though the market closed off the high as heavy weighs eased, it was clear that sentiment improved.

Buying was seen focusing on high beta shares including mineral and property stocks. Pennies were more active.

The Ministry of Finance (MoF) today issued Circular No. 239/TB-BTC, requesting the petroleum wholesalers to cut petroleum retail prices from 14:00 local time of June 7. Accordingly, petroleum retails prices are cut by VND800/litter to VND21,900/litter for gasoline; VND700/litter to VND20,500/litter for diesel and  VND20,400/litter for kerosene and cut by VND650 to VND18,250/litter for mazut

Tan Tao Investment – Industry Corporation (ITA), the most active stock on a trade of 5.4 million shares, leaped 4.05% to end at VND7,700.

SACOM Development and Investment Corporation (SAM), coming second in liquidity with 2.7 million shares changed hands, jumped 2.38% to settle at VND8,600.

Saigon Securities Incorporation (SSI) rallied 3.72% to finish at VND22,300 on a trade of 2.5 million shares – the third most active.

On the Hanoi Stock Exchange, the HNX climbed up 2.09 points or 2.83% to 75.87. Trading volume rose 105% to 74 million shares worth VND739.8 billion.

The market breadth was positive where 152 rallied, 76 declined, 69 closed unmoved.

The market focus on this bourse today was trading of PetroVietnam Construction Joint Stock Corporation (PVX) which saw more than 12 million shares changed hands and share prices kept staying at the ceiling level.

Hanoi Building Commercial Joint Stock Bank (HBB) and Kim Long Securities JSC (KLS) were also active players whose share prices hit the ceiling.