Cheaper gold and oil fuel market growth

HA NOI — A lowered oil price, expanded trading band and reduced gold prices proved to be a happy series of events for the domestic stock market last week.

The VN-Index last week jumped a total of 44.66 points or 10.05 per cent to 488.94. Almost every listed shares rose sharply, especially on Thursday and Friday, after information on the loosened trading band and lowered petroleum price was released.

The biggest gainers of the week were all big stocks who have had a major impact on the market’s development. Staying ahead is BMC of Binh Dinh Minerals with a gain of 14.71 per cent to VND117,000; followed by TCT of Tay Ninh Cable Tour, up 14.15 per cent to VND121,000; and SJS under property business Song Da Urban – IZ Investment&Development, up 13.91 per cent to VND86,000.

Some listed companies were not so lucky, as last week was the deadline for dividend payments, leading to some heavy losses. TPC of Tan Dai Hung Plastic shot down 44.79 per cent to VND9,000, while REE of Refrigeration Engineering Electrical Corp was down 17.79 per cent to VND28,800.

Positive predictions

Local brokerage house EuroCapital has forecast that the stock market would warm up in the third quarter of the year, in its market review of the first six months of 2008, also predicting that the VN-Index would move by around 500-550 points, and the HASTC-Index around 150 points. The firm based their predictions on the business results of listed firms, investors’ sentiments and financial power, and capital intercommunication among investment channels. According to EuroCapital Securities, the business performance of listed companies will continue to reflect the impacts of the general economy on each business sector. For example, healthcare and telecommunications usually minimally affected by the general economy. Investors have become eager again to trade securities, after undergoing the hardest period. However, the flow of money from investors has been restrained due to high daily expenses, and caution in investment. In addition money from other investment channels like gold, US dollars or property, began flowing back into the securities market, contributing to keeping the balance between pipelined money (demand) and offered shares (supply), the firm added. — Posted in Uncategorized | Tagged: 'oil, Add new tag, and, Cheaper, fuel, gold, growth, market | Leave a Comment » A brief history of trading band adjustments Posted by Bao Viet Nam on August 19, 2008 The trading band for both the HCM City Stock Exchange (HOSE) and the Ha Noi Securities Trading Centre (HASTC) will be widened once again today. The State Securities Commission’s Thursday decision sets HOSE’s new trading band at 5 per cent and HASTC’s at 7. The trading band represents the amount that listed shares can rise or fall within a single trading day. The expansion is the ninth trading band adjustment since the stock market began sessions in 2000. Since, then band adjustments have served as a barometer for market conditions within the country. July 28, 2000: The first time the trading band was altered, the State Securities Commission tightened it from the planned 5 per cent to 2 per cent. The new band applied in the very first trading session of the stock market. The VN-Index started at 100 points, and after a year with an adjusted 2 per cent band, it rose to 571 points. June 13, 2001: The commission decided to widen the band from 2 to 7 per cent, plus or minus. The stock market saw rapid growth during 6 consecutive sessions. Subsequently, the VN-Index dropped to a record low of 203 points on October 12, 2001. October 15, 2001: As a result of broad panic on the stock market, the trading band was changed a third time. Securities regulators decided to make a dramatic move by tightening control over shares, narrowing the band to 2 per cent, plus or minus, from the previous 7 per cent. The commission also decided to reduce the tranche of shares from 100 to 10 and to increase the trading session number to six days a week, instead of three. As a result, the VN-Index advanced consistently for 19 sessions, but then began dropping back. August 1, 2002: The trading band was loosened from 2 to 3 per cent and the VN-Index still declined. December 23, 2002: The commission resumed a 5 per cent trading band to encourage more exchanges. The stock market experienced strong growth during the 2005-2007 period. March 27, 2008: Impacted by the fluctuation of both local and global economies, the nation’s stock market began to suffer. Investors began selling shares en masse, incurring huge losses. Securities regulators once again intervened in the market by reducing the band to 1 per cent from 5 per cent on HOSE, and 2 per cent from 10 per cent on HASTC. As a result, the VN-Index rose for several sessions. The action prevented share dumping, but liquidity was lost. April 7, 2008: Due to lack of market liquidity, an imbalance arose between share supply and demand, so the commission cautiously loosened the band by one percentage point for both bourses. The VN-Index continued its up-trend and then went into a consistent falling pattern, though liquidity improved somewhat. June 16, 2008: The band was loosened by one percentage point yet again, as Government efforts toward stabilising the economy began showing the first signs of success. Accordingly, shares listed on HOSE were traded at around 3 per cent of a single day’s preference price, plus or minus. On HASTC, shares fluctuated within 4 per cent. The VN-Index fell in 3 consecutive sessions to its lowest level yet, 368 points, on June 20. After that it rebounded and continued gradual gains, with the occasional downturn as investors unloaded shares to turn a profit. August 18, 2008: Shares listed on HOSE will be traded at around 5 per cent instead of 3, and shares on HASTC at 7 instead of 4. The change has been viewed as a bold and potentially reckless step by securities regulators. However, the regulators have based the change on the increasing stability of local and overseas economies and greater enthusiasm from investors in securities trading. — Posted in Uncategorized | Tagged: A, Add new tag, adjustments, band, brief, History, of, trading | Leave a Comment » A brief history of trading band adjustments Posted by Bao Viet Nam on August 19, 2008 The trading band for both the HCM City Stock Exchange (HOSE) and the Ha Noi Securities Trading Centre (HASTC) will be widened once again today. The State Securities Commission’s Thursday decision sets HOSE’s new trading band at 5 per cent and HASTC’s at 7. The trading band represents the amount that listed shares can rise or fall within a single trading day. The expansion is the ninth trading band adjustment since the stock market began sessions in 2000. Since, then band adjustments have served as a barometer for market conditions within the country. July 28, 2000: The first time the trading band was altered, the State Securities Commission tightened it from the planned 5 per cent to 2 per cent. The new band applied in the very first trading session of the stock market. The VN-Index started at 100 points, and after a year with an adjusted 2 per cent band, it rose to 571 points. June 13, 2001: The commission decided to widen the band from 2 to 7 per cent, plus or minus. The stock market saw rapid growth during 6 consecutive sessions. Subsequently, the VN-Index dropped to a record low of 203 points on October 12, 2001. October 15, 2001: As a result of broad panic on the stock market, the trading band was changed a third time. Securities regulators decided to make a dramatic move by tightening control over shares, narrowing the band to 2 per cent, plus or minus, from the previous 7 per cent. The commission also decided to reduce the tranche of shares from 100 to 10 and to increase the trading session number to six days a week, instead of three. As a result, the VN-Index advanced consistently for 19 sessions, but then began dropping back. August 1, 2002: The trading band was loosened from 2 to 3 per cent and the VN-Index still declined. December 23, 2002: The commission resumed a 5 per cent trading band to encourage more exchanges. The stock market experienced strong growth during the 2005-2007 period. March 27, 2008: Impacted by the fluctuation of both local and global economies, the nation’s stock market began to suffer. Investors began selling shares en masse, incurring huge losses. Securities regulators once again intervened in the market by reducing the band to 1 per cent from 5 per cent on HOSE, and 2 per cent from 10 per cent on HASTC. As a result, the VN-Index rose for several sessions. The action prevented share dumping, but liquidity was lost. April 7, 2008: Due to lack of market liquidity, an imbalance arose between share supply and demand, so the commission cautiously loosened the band by one percentage point for both bourses. The VN-Index continued its up-trend and then went into a consistent falling pattern, though liquidity improved somewhat. June 16, 2008: The band was loosened by one percentage point yet again, as Government efforts toward stabilising the economy began showing the first signs of success. Accordingly, shares listed on HOSE were traded at around 3 per cent of a single day’s preference price, plus or minus. On HASTC, shares fluctuated within 4 per cent. The VN-Index fell in 3 consecutive sessions to its lowest level yet, 368 points, on June 20. After that it rebounded and continued gradual gains, with the occasional downturn as investors unloaded shares to turn a profit. August 18, 2008: Shares listed on HOSE will be traded at around 5 per cent instead of 3, and shares on HASTC at 7 instead of 4. The change has been viewed as a bold and potentially reckless step by securities regulators. However, the regulators have based the change on the increasing stability of local and overseas economies and greater enthusiasm from investors in securities trading. — Posted in Uncategorized | Tagged: A, Add new tag, adjustments, band, brief, History, of, trading | Leave a Comment » Local blue-dragon fruit takes flight to US markets Posted by Bao Viet Nam on August 19, 2008 Blue-dragon fruit on sale in Phan Thiet City. Vietnamese suppliers are urged to provide fruit of higher quality to meet standards for the US market. — VNA/VNS Photo Trang Duong BINH THUAN — Viet Nam will begin exporting blue-dragon fruit (cactus fruit) from its southern provinces to the US starting at the end of September, now that fruit quality meets the necessary standards. Despite Viet Nam’s broad variety of tropical fruit, the country has previously been unable to export directly to the US, one of the world’s largest markets. During a visit to the US in late June, PM Nguyen Tan Dung said that if blue-dragon fruit could enter the US market this year, other Vietnamese fruit such as longans, rambutans, lychees and even durian would follow. Dung later told a meeting with overseas Vietnamese in Texas that Vietnamese dragon fruit did in fact make it to the US, but only after being rebranded in Thailand or Singapore. Binh Thuan Province, the biggest exporter of blue-dragon fruit, exports over 150,000 tonnes every year, mainly to China, and earns US$20 million, said Pham Huu Thu, the head of the agriculture unit of Binh Thuan Province’s Agriculture and Rural Development Department. “Now, with the US market, we hope profits will be even higher,” said Thu. Dragon rising John Thaw, previously of the US Department of Agriculture and the US Farm Produce Quarantine Commission, said that to sell on the US market, Vietnamese suppliers needed to be able to provide fruit of consistent quality which could meet the US’s strict quarantine procedures. In the southern provinces of Tien Giang, Binh Thuan and Long An, which grow blue-dragon fruit, farmers have changed to meet GlobalGap standards of planting, preliminary processing and packaging, according to Nguyen Minh Chau, head of the Southern Fruit Research Institute. Their efforts set the standard for blue-dragon fruit production by minimising the detrimental environmental impact of farming operations, reducing the use of chemicals and ensuring a responsible approach to worker health and safety, said Dam Quoc Tru, deputy head of the Plant Protection Department. The US market has asked that Vietnamese blue-dragon fruit be marked with a code, said Tru. Accordingly, the three provinces’ agriculture and rural development departments have provided farmers with necessary technical access and support. Binh Thuan Province, the country’s largest area for blue-dragon fruit production, has a 10,000ha institute devoted to blue-dragon fruit research and development to help farmers meet US market standards, said Pham Huu Thu. However, persuading farmers to implement the technical standards was problematic as China still accepts fruit grown using traditional methods, he said. Moreover, these farmers also need to co-operate with each other to form large-scale blue-dragon fruit farms so that their land and irrigation systems can meet requirements, said Thu. Le Dinh Quang, in Binh Thuan Province’s Ham Thuan Nam District, with 1.2ha of blue-dragon fruit, earns VND180 million ($11,250) on average per year. So, at the beginning he wondered why he had to change his practices to export fruit to the US market. “However, then I began to understand that only with proper technical methods like those required by big markets such as the EU or US, would my fruit gain access to such long-term and stable markets, said Quang. “So I changed my planting methods according to the new technical standards,” said Quang. “Now, my friends and I are planning to set up a joint farm. In doing so, we will save a lot of time and money by investing in improving our land and irrigation systems, and our fruit can be coded more easily,” said Quang. “We need to take the initiative in testing samples of land and water from the farms,” said Thu. In Binh Thuan Province alone, there are now 1,000ha of blue-dragon fruit, mainly from large-scale farms like Ham Minh Blue-dragon Co-operative and Hoang Hau Blue-dragon Co-operative, which have won recognition for meeting the technical standards of American vegetation quarantine departments. “However, we are only required to adjust some of the packaging technology,” said Nguyen Thuan, head of Ham Minh Blue-dragon Co-operative. “After meeting all the requirements of the US market, we still face difficulties in finding partners to improve market access, so we established the website www.thanhlonghamminh.com,” said Thuan. “Now Viet kieu partners in the US who are interested in our fruit can make long-term contracts with us. We are considering pricing and transport methods at present,” said Thuan. At the end of September, Viet Nam’s first blue-dragon fruit will be exported to the US market, said Thu. — Posted in Uncategorized | Tagged: Add new tag, blue-dragon, Flight, fruit, local, markets, takes, US | Leave a Comment » Ministry cracks down on fertiliser quality violations Posted by Bao Viet Nam on August 19, 2008 Workers load fertiliser at the Phu My Oil and Gas Service Port. Only 50-60 per cent of fertilisers on the local market meet registered quality demands. — VNA/VNS Photo Ha Thai HA NOI — The fertiliser market came under close scrutiny after relevant authorities discovered that nearly half of the nation’s current supply was not up to quality standards. According to a recent investigation conducted by the Ministry of Agriculture and Rural Development’s (MARD) Cultivation Department, 81 out of 201 fertiliser samples tested did not meet their registered qualities, and some fertilisers contained only 50 to 60 per cent of their registered qualities. The Viet Nam Fertiliser Association (VNFA) attributed the problem to the price hike of raw materials on the global market and the increased demand for fertilisers on domestic market. The association said that to date, prices for raw materials to produce urea fertilisers had risen 150 per cent over the same period last year. The figures for DAP and potassium fertilisers were even higher, roughly 360 per cent. Meanwhile, the country had to import a large number of materials for fertiliser production. Due to these reasons, a number of producers had churned out many low-quality fertilisers in order to turn a profit, explained the association. Aside from domestic fertilisers, quality levels of imported fertilisers were also not completely under control, according to MARD. The ministry added that several imported fertilisers were not meeting their registered qualities. To stabilise the domestic fertiliser market, VNFA vice chairman and general secretary Nguyen Dinh Hac Thuy recommended that it would be necessary to issue strict punishments for violations. Relevant authorities have used the mass media to make public the names of low-quality fertilisers and the enterprises that supply such products and fertilisers, in order to advise farmers not to use them. MARD has so far released the names of 25 violators. Thuy said that the issuance of certain criteria and standards on technology and infrastructure required for fertiliser establishments would also be indispensable to the better management of the fertiliser market. The upgrading of quality examination laboratories would also be necessary, as relevant authorities had so far found it hard to examine the quality of fertilisers, according to industry insiders. — Posted in Uncategorized | Tagged: Add new tag, cracks, down, Fertiliser, Ministry, quality, violations | Leave a Comment » Property index to debut by end of ‘08 Posted by Bao Viet Nam on August 19, 2008 HA NOI — The Ministry of Construction has announced plans for a real estate market index (REMI) to regulate the domestic market by the end of this year. The index will show official fluctuations of the real estate market, by updating market information including prices, investors, products, trading times and trading volumes, according to the ministry. Initially, the index will be applied to leased apartments, offices and hotels in HCM City starting in the fourth quarter of this year. The index will later be upgraded and applied nation-wide. Pham Sy Liem, vice chairman of the Viet Nam Construction Association, said that the ministry will develop the index for each product in the market, each locality nation-wide, and then build a general index for the entire country suitable to the characteristics of the domestic property market. The index needs careful research, analysis and foreign input, he said. Tran Minh Hoang, chairman of Vinaland Invest Corp’s management board, said that without the index, many customers and investors cannot access basic information about the market for reference when checking changing property values. He noted that because of this, many investors were buying property at elevated prices. Hoang said that HCM City authorities should build indices for regions in the city as a better way to enhance transactions on the property market. Vinaland has started to build a price index according to area, product and trading volume for urban areas in Sai Gon’s south and east. Truong Thai Son, deputy general director of the Hoang Quan Real Estate Company, said the country has had some district-level real estate indices built by property companies for their management, business and interest. He noted that a national real estate index would help the property market become more transparent. Low-scale customers, investors, even State management offices and banks need an index to reference in real estate transactions, he said, adding that the index would boost development of the real estate market and help banks balance credit to meet supply and demand. — Posted in Uncategorized | Tagged: Add new tag, ‘08, by, debut, end, of, Propertydex | Leave a Comment » Viet Nam, UAE get friendly Posted by Bao Viet Nam on August 19, 2008 Ha Noi — Viet Nam and the United Arab Emirates (UAE) have signed a co-operation agreement on investment, finance, trade and labour, during a recent visit to the UAE by a Vietnamese Government delegation led by the Minister and Chairman of the Government Office Nguyen Xuan Phuc. The delegation included vice chairmen of the People’s Committees of HCM City, Binh Thuan and Quang Ninh provinces and representatives of many businesses. During the August 10-15 visit, made at the invitation of Prince Sheikl Tahuoon Al Nahayan, the delegation met with leading UAE economic groups, including Tanouh, Mubadala, Etisalar, Al Qudra, Bhoom Al Masdar, Limitless of Dubai Work and the Trade Ministry of the UAE. The UAE groups expressed a keen interest in developing infrastructure as well as investing in real estate, urban and agricultural development projects in Viet Nam. The UAE side said it was willing to import Vietnamese rice and food and receive a large number of Vietnamese workers. The delegation was received by General Mohammed Bin Zayed, Crown Prince of Abu Dhabi who is Deputy Supreme Commander of the Armed Forces of the UAE. — Posted in Uncategorized | Tagged: Add new tag, friendly, Nam, UAE, Viet | Leave a Comment » As Korea’s tenth largest importer, Viet Nam stocks up on oil, autos Posted by Bao Viet Nam on August 19, 2008 Dried lychees are canned by workers at Bac Giang Food Company. The company has plans to export these products to traditional markets, including South Korea. — VNA/VNS Photo Pham Hau HCM CITY — Viet Nam is the 10th largest importer of Korean products, according to the Korean Trade Investment Promotion Agency (Kotra). Korea’s total export value to Viet Nam reached US$4.5 billion in the first half of the year, an increase of 78 per cent over the same period last year. Korea’s top exports to Viet Nam are oil, automobiles, textile products and sheet metal. The export value of these products is $2.05 billion, or 44.4 per cent of total value of Korean exports. Kotra said Viet Nam had been importing more oil because of the country’s economic expansion. Korean products including automobiles and electronic products are also popular in Viet Nam. While Korea’s total export value reached $4.5 billion, Viet Nam’s total export value to Korea reached only $1 billion during the half first of the year. However, Kotra says that bilateral trade between the two countries would be worth $10 billion by the end of the year. — Posted in Uncategorized | Tagged: 'oil, Add new tag, as, autos, importer, Korea’s, largest, Nam, stocks, tenth, Viet | Leave a Comment » VRB bank to open a bank in Moscow Posted by Bao Viet Nam on August 19, 2008 HA NOI — The joint-venture Viet Nam-Russia Bank (VRB), has received approval from the State Bank of Viet Nam to establish a bank in Moscow. The VRB will still need a licence from the Planning and Investment Ministry of Viet Nam before opening the bank in Moscow. The charter capital of the new bank is US$8 million, and wholly provided by VRB. The Ha Noi-based joint-venture bank (VRB), has charter capital of $62.5-million, 51 per cent owned by the Bank for Investment and Development of Viet Nam (BIDV) and 49 per cent by VTB, the second largest lender in Russia, formerly known as Vneshtorgbank. The VRB venture began in 2006 while the then Russian President, Vladimir Putin, was in Ha Noi for the Asia Pacific Economic Co-operation summit (APEC). Viet Nam-Russia Bank’s total assets in June this year reached $228 million at the end of June, up 25 per cent from the end of 2007. — Posted in Uncategorized | Tagged: A, Add new tag, Bank, Moscow, open, VRB | Leave a Comment » Share prices rise with loose trading band Posted by Bao Viet Nam on August 19, 2008 HA NOI — Share prices soared yesterday as the daily trading band was loosened for the domestic stock market. Yesterday, shares listed on the HCM City Stock Exchange were traded within the band limit of 5 per cent instead of three, and shares on the Ha Noi Securities Trading Centre at seven instead of four. The State Securities Commission (SSC) officially announced the trading band expansion last Thursday in a move to improve market liquidity. Inflation ratios, foreign direct investment and improved interest rates all helped facilitate the decision, the SSC said. The VN-Index closed—far exceeding the psychologically important mark of 500 points—at 508.05, after jumping 19.11 points, or 3.91 per cent. The southern market saw 143 winners, the majority of which hit the ceiling, and 11 losers. The trading volume nearly doubled last Friday’s figure at 18.8 million shares and fund certificates, with a total turnover of more than VND786 billion (US$47.63 million). Phu My Fertilisers (DPM) was the most active yesterday with orders for nearly 2.4 million shares, followed by Hoa Phat Group (HPG) with 1.27 million shares. Sacombank (STB) was also in demand, with purchases exceeding sales by 1.9 million shares. Foreign investors were net buyers, taking 4.18 million shares and selling 2.18 million units. Net purchase value reached VND137 billion ($8.3 million). At the Ha Noi Securities Trading Centre, the HASTC-Index climbed 6.28 points, or 4.14 per cent, to end at 157.93. Trading volume tripled Friday’s figure at 10 million shares, with total revenues of VND385.37 billion ($23.25 million). Asia Commercial Bank (ACB) led the northern market in terms of trading volume with 1.43 million share traded, followed by Petroleum Technical Service Corp (PVS) and PetroVietnam Insurance (PVI), with around 800,000 million units each. “Authorities have seen improvements in the macro-level environment as well as in the stock market, so they made the decision,” deputy director of Thang Long Securities Do Hiep Hoa said, adding that it was reasonable to make such a decision now, when investors were excited. Ha Noi Securities said that a bigger trading band and lower petrol prices had a positive effect on the stock market and “could absolutely last throughout this week.” The Viet Nam International Securities’ Analysis Department said that with an expanded trading band, investors would soon reach expected profits, so they would soon cash in on their profits. Therefore the market may see downward adjustments in the final days of the week. Hoang Chung, an investor with An Binh Securities, said he might temporarily withdraw from the market, waiting for August’s consumer price index (CPI) to be announced. “A bigger trading band helps the market increase rapidly, but can also cause prompt declines,” Chung said, adding that he was not sure about the economy. “The economy has seen some improvement, but hasn’t been as good as it was some years ago,” director of SSC’s Market Development Department Nguyen Son told reporters late last week. “There are still some potential problems.” Son cited that petrol prices were still at [a high of] VND18,000 a litre despite having been slashed by VND1,000, and the prime interest rate remained at 14 per cent. “Those are factors that hurt enterprises.” He said that the trading band would be adjusted flexibly in accordance with market developments. “Since inflation has been curbed and world oil and gold prices have fallen significantly, investors can believe in the good prospects of the economy in the final months of the year,” Mirae Asset Securities’ Analysis Department said. “However, lending rates hovering around 20 per cent per year are a big hindrance to the market,” it said. EuroCapital Securities, in a recent market review, forecast that the market would warm up in the third quarter of the year, expecting the VN-Index to move by around 500-550 points and the HASTC-Index around 150 points. — Posted in Uncategorized | Tagged: Add new tag, band, loose, prices, rise, share, trading | Leave a Comment » « Previous Entries   Blog at WordPress.com. | Theme: Andreas09 by Andreas Viklund.