105 stocks on HOSE and 100 stocks on HASTC suffer losses

Trading boards of both southern and northern bourses today were overwhelmed in red as a majority of stocks listed were decliners.

As many as 105 stocks listed on the southern bourse, or two thirds of the total 154 listed stocks, dropped while only 37 gained and 12 others stayed still. The VN-Index closed at 530.62, down 0.8% or 4.3 points. Trading volume continued to reduce with only 4.2 million shares traded through order matching method for only VND 194 billion.

Only two of the most large-cap stocks, VNM and PVD were among the top five gainers. Other stocks, DPM, STB, PPC, FPT, SSI, ITA and HPG were all losers.

DPR shares of Dong Phu rubber company were today listed in the top five gainers and top five most traded stocks. DPR gained VND 1,000 to VND 55.500 a share with nearly 195,000 shared traded, ranking third in terms of trading volume on the Ho Chi Minh City Stock Exchange.

DPM was the most traded stock with more than 954,000 shares matched at VND 51,500 a share, down VND 500 a share.

Foreign investors today bought nearly 1.3 million shares worth more than VND 78 billion, including DPM (601,700 units), PVD (119,280 units) and DPR (80,200 units) while sold only 120,000 shares worth VND 9.5 billion.

In Hanoi, the HASTC-Index closed the day at 174.26, down 3.07 points or 1.73%. Trading volume was low at 2.4 million shares worth VND 102 billion. One hundred stocks listed on the bourse were decliners while only 21 were advancers and 13 maintained their reference prices.


source: http://english.vietnamnet.vn/biz/2008/04/779695/

FDI in real estate on the increase

Foreign direct investment (FDI) is increasingly flowing into the local real estate market at a time local investment in this sector is dwindling due to the tightening monetary policy, according to a forum last week in Danang City.

At the international forum on real estate development over the weekend in the central coast city, many said restrictions on bank loans for local developers have given way for investment funds, most of them foreign institutions, to emerge as the key source of financing for the real estate market. Meanwhile, foreign direct investment into this sector is also surging due to the attractiveness of the market, they said.

Tran Kim Chung of the Central Institute for Economic management told the forum that the higher lending rate has forced many local investors to postpone their property projects. Meanwhile, the Government is waging a war against inflation, tightening its purse string for new investments, especially disbursement for new properties, Chung said.

"As a matter of course, when banks restrict credits for the real estate sector, other investment funds will emerge to fill up the vacuum," Chung said.

Central Vietnam in general and Danang City in particular has been witnessing a strong increase in FDI for the property sector.

Peter Ryder, general director of the investment fund Indochina Capital, told the forum that his institution was investing US$500mil in Quang Nam and Danang to develop resorts, hotels and trade centers. "In addition, we are also making strong investment in industrial parks in Quang Nam, Danang, and Quang Ngai provinces," Ryder said.

Several other investors are also involved in large-scaled developments in the central region, including VinaCapital, Kingdom Hotels Investments, and Oaktree, the last-named investor recently announcing a plan to invest US$5bil to develop a huge resort in Danang City's Lien Chieu District.

Nguyen Manh Ha, head or the Housing Management Department under the Ministry of Construction, told the gathering that FDI committed into the real estate sector now occupy an increasing proportion in the total amount of foreign investment.

In 2007, the amount of FDI pledged in the real estate sector totaled US$8.5bil, or up to 42% of the total FDI committed last year. In the first quarter this year, this amount continues to increase strongly, amounting to US$5bil, Ha said, adding the strong property investment has also helped bolster other economic sectors.

"This source of invested capital (for the real estate sector) has helped other sectors to develop and boost income for provincial budgets. In some provinces, the revenue for the State Budget is as high as 50%," Ha said.

source: http://english.vietnamnet.vn/biz/2008/04/778901/

New opportunities for foreign investment funds

The Director of Indochina Capital Fund (ICF) said while the recent declining stock market has negatively impacted on the fund, it has also created bigger opportunities for the company to continue investing in Vietnam.

ICF Director Thomas Ngo has announced that the company will invest 200 million USD in private Vietnamese companies who are facing difficulties in mobilising capital due to sharp falls in the stock market.

He said that another area for possible investment are companies listing shares with a low Price-Earnings (P/E) ratio.

A managing director of a HCM City-based foreign investment fund also agreed that while it may be a difficult period for investors, it also brings new opportunities to those in a firm position.

When targeting potential companies, even newly-established ones, the market’s adverse developments do not affect his fund’s plans, he said.

He also revealed his fund will continue to buy the number of shares set out in its initial plan.

Dragon Capital Investment Fund Director Dominic Scriven also affirmed his fund’s investment plans will not change because it is a medium- and long-term investor.

While speaking of the fund’s recent losses, Scriven said he was optimistic about future business in the country.

“If I have the money, I will buy shares at this time,” he said.

The above-mentioned managers’ statements indicated that the rumours that foreign investors are withdrawing capital from the Vietnamese stock market were quite groundless. An official from the State Securities Commission (SSC), Nguyen Son, Head of the Vietnam Securities Market Development Department, also denied the information and warned investors against listening to a rumour that could harm their interests.

According to the Securities Depository Centre, recent foreign investment transactions have remained high.

By early March, 600 foreign organisations and over 9,200 individuals were granted transaction codes, up 5 percent and 2.4 percent respectively, over the previous month.

“In an overall view, difficulties only come in the short term but in the long term, the stock market will stay on track with its growing trend,” Finance Minister Vu Van Ninh told the press on the sidelines of the National Assembly Standing Committee’s session.

“Investors should stay calm to make right investment decisions,” he said.

After a series of Government’s and the SSC’s measures took effect, the stock market has showed signs of recovery in recent trading sessions, with indexes increasing in both Ho Chi Minh City and Hanoi bourses.

source: http://english.vietnamnet.vn/biz/2008/04/776482/