Fertilizer stocks jump on supporting news
HCMC – The local stock market advanced for the second straight session on April 19 as some large caps and fertilizer stocks made nice gains on supporting information, lifting the VN-Index up 1.84 points, or 0.26%, at 716.77.
The Vietnam Competition Authority (VCA) under the Ministry of Industry and Trade has recently announced it has received a proposal from local fertilizer producers to apply an anti-dumping tax on imported fertilizers. VCA is getting more information on the capacity and production volume of local fertilizer producers to decide whether to proceed further.
According to Viet Capital Securities Company (VCSC), fertilizer imports into Vietnam increased due to regional oversupply last year. These imported fertilizers were priced 5-10% lower than local products.
Meanwhile, the fertilizer industry has been facing numerous difficulties related to fake fertilizers and poor-quality imported fertilizers. Competition was even tougher in the first quarter of 2017 when imported fertilizer volume increased sharply over the same period last year.
“Therefore, we believe this proposal is a positive move to protect local producers against cheap imported products. The anti-dumping tax, if applied, would help stabilize the fertilizer industry and would be a catalyst not only for DPM, but also for other fertilizer stocks such as DCM, BFC and LAS,” VCSC said.
The fertilizer sector performed strongly on April 19 with DCM, DPM, PSW, VAF and LAS shooting up to the ceiling prices. The remaining stocks TSC and BFC also jumped 2.9% and 5.6% respectively.
In the banking sector, VCB made a slight rebound while STB, BID, MBB and ACB still closed in the red. Among large caps, MWG climbed 2.5% to close at the intraday high at VND167,000 per share, while VJC increased 1.9% at VND131,400 a share.
However, turnover on the HCMC market fell sharply with trading value shrinking 26% against the previous day at VND3.1 trillion and volume dropping 20% to 151.5 million shares. FLC led the market for liquidity with 19.4 million shares traded, followed by HQC with 8.8 million shares and DLG with 8.2 million shares.
The Hanoi market, meanwhile, failed to extend its gain as pillar stock ACB failed to give any support. The HNX-Index closed almost unchanged, sliding 0.01% from the session earlier at 89.11, with turnover tumbling nearly 40% to VND535 billion.
SHB was the strongest gainer, rising 1.3% at VND7,500 a share on matching volume of 23.7 million shares. Foreigners net sold over 2.8 million SHB shares during the day.