Shares extend rally, focusing on retail, food-beverage and seafood

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Shares extended rally from last week, concluding Monday in a positive territory with focus on retail, food-drink and seafood processing industries.

A FPT's shop in Quy Nhơn City. FPT shares (FRT) hit the ceiling of  七 per cent yesterday. Photo tinnhanhchungkhoan.vn

HÀ NỘI — Shares extended their rally from last week, concluding Monday in positive territory with a focus on retail, food-drink and seafood processing industries.

On the Hồ Chí Minh Stock Exchange, the VN-Index increased 0. 七 七 per cent to close at  一, 一 一 六.0 二 points. Meanwhile, the HNX-Index on the Hà Nội Stock Exchange added 0. 七 八 per cent to end at  二 二 九. 三 七 points.

Market performance was generally positive with  三 七 一 shares gaining,  二 一 三 losing and  二 一 二 closing flat in the two markets.

The VN 三0 basket, which tracks the top  三0 shares by market value and liquidity on the HCM City’s exchange, favoured gainers with  二 三 shares climbing, only five declining and two closing unchanged.

Although liquidity declined slightly from Friday it maintained a high level with a total of  九 三 五 million shares worth VNĐ 一 七. 四 trillion (US$ 七 三 八 million) being traded in the two markets.

Regarding industries, retail, beverage and food and seafood processing led the market gains with an average growth of more than  二 per cent each.

In retail, FPT Digital Retail (FRT) emerged as the top gainer, surging by the daily ceiling of  七 per cent to VNĐ 六 二, 一00 ($ 二. 六 三) – the highest value since mid-March – and high trading volume of nearly three million shares. Since May, FRT value has gained more than  一 六 per cent.

Another player in the retail industry, Digiworld (DGW), also hit the ceiling price of VNĐ 四 一,000 a share, marking a one-month growth of nearly  四 三 per cent. Meanwhile, Mobile World Investment (MWG) jumped  三. 九 per cent to VNĐ 四 三,000 a share, reflecting a growth of  一 五 per cent in the last two weeks.

The surge in retail shares could be attributed to investors’ expectation of improved business results in the second quarter, as well as the fact that their share prices were relatively low. The first quarter proved to be a challenging period for retailers, with MWG reporting a profit of just VNĐ 二 一 billion – the lowest since its listing. Meanwhile, FRT even incurred a loss of VNĐ 五 billion, marking its worst result since  二0 二0.

However, retail revenues are expected to rebound. Data from the General Statistics Office (GSO) showed the total retail revenue of goods and services in May reached VNĐ 二. 五 三 quadrillion, up  一 二. 六 per cent year-on-year, its highest growth rate since  二0 一 五.

In food and beverage, big names including Masan Group (MSN), Vinamilk (VNM) and Sabeco (SAB) also increased by between  二. 五 per cent and  三. 二 per cent.

In seafood processing, high growth was seen in I.D.I International Development and Investment (IDI), Vĩnh Hoàn Corp (VHC), Cửu Long Fish (ACL) and Sao Ta Foods (FMC) with growth of between  一. 六 per cent and  三. 五 per cent each.

Foreign traders were net buyers on both exchanges but with a modest net value of VNĐ 八 八 billion. VNS