Stocks jumps on heavy buying; VN-Index surpasses 450

The Ho Chi Minh Stock Exchange rose sharply on Monday over a speculation on positive first-haft corporate earning results, which are expected to be released soon this month.

VN-Index, a measure of 162 leading companies and four closed-end funds on the bourse, gained for a third session, rising 4.3 percent, the most in a month, to a one-week high of 454.27.

Among the index members, 160 stocks gained, and a mere three dropped.

“Stocks, particularly blue chips, today increased on heavy buying as investors expected healthy earning results of listed companies will push the market up sharply,” said a dealer in Ho Chi Minh City.

The country’s gross domestic product grew 3.9 percent in the six months through June compared to a year earlier, after gaining 3.1 percent in the first quarter, the General Statistics Office in Hanoi said.

The economy expanded 4.5 percent in the second quarter from a year earlier, according to the statement released on July 1.

PetroVietnam Finance Co. (PVF), the second-biggest company on the exchange, rose by almost the 5 percent daily limit to VND40,200, its biggest gain since June 26.

PetroVietnam General Services Joint-Stock Company (PET), which exports agricultural products and provides trading services, surged by the daily maximum limit of 5 percent to VND18,900.

The HCMC-based company, which also offers services such as lodging, storage and warehousing, posted a 19 percent rise in pretax profit to VND76 billion for the first half, according to a statement on its Web site.

This was equivalent to 76 percent of the company’s full-year target, the statement said. Revenue reached VND3.8 trillion by the end of June, equal to 69 percent of its full-year target, according to the statement.

Bien Hoa Confectionery Joint-Stock Company (BBC), the candy maker also known as Bibica, advanced 4.8 percent, to a one-week high of VND30,900.

Saigon Securities Inc., the country’s biggest listed brokerage, bought 448,480 shares to raise its Bibica stake to more than 1.6 million shares, or 10.52 percent, from 7.6 percent, Bibica said in a statement to the exchange after the market closed on July 3.

Saigon Securities confirmed the transaction in a separate statement on its Web site.

At smaller exchange in Hanoi, the HaSTC-Index closed higher 6.38, or 4.38 percent, at 152.14.

By Phong Linh

Other news