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PetroVietnam’s capital withdraws to hit stock market, experts say

In Uncategorized on January 8, 2011 at 4:28 am

The oil and gas giant PetroVietnam’s capital withdrawals will effect the stock market in short-term and give a boost to some of its subsidiaries opportunities, financial experts said.

An investor watches share prices updated on a big screen at a HCMC-based brokerage (Photo:Minh Tri)

The Vietnam Oil and Gas Group, known as PetroVietnam, early this year began to withdraw its capital in its subsidiaries, which are not in the group’s core businesses.


The state-owned oil and gas giant also announced it would cut 51 percent of its holdings in the member companies specific in the group’s key fields


The move came from the state-owned gasoline supplier’s attempt to restructure its business model, of which the group will focus on mining and refining oil, according to PetroVietnam’s deputy general director Nguyen Ngoc Su.


The plans come at a time when market developments have facilitated the State’s withdrawal of investment in listed companies such as PetroVietnam Finance (PVF), Phu My Fertilizers (DPM) and Petroleum Technical Services Corp (PVS), baobariavungtau website quoted Su as saying.


The deputy director said PetroVietnam has “basically completed” their plan on restructuring and renewing its subsidiaries, with 14 units being equitised. So far, PetroVietnam has successfully auctioned more than 313 million shares, bringing in VND17,54 trillion (US$986.4 million).


Financial experts said PetroVietnam’s capital withdrawals would affect the slumping stock market, as well as share prices of its listed subsidiaries. However, selling shares in the firms not specific in core businesses will help the oil and gas group to regain a large amount, which will be reinvestments in current projects.


Stock analysts said oil stocks are among the market’s gainers in both short and long term. Listed enterprises specific in mining oil and renting rigs remain in black during the global economic turmoil, and will be the first ones growing sharply when the economy recovers, analysts said.


At present, two subsidiaries of the group including PetroVietnam Technical Services Joint Stock Corp. (PVS) and PetroVietnam Drilling and Well Services Joint Stock Company (PVD) are achieving healthy earning so far this year.


The former made a pretax profit of VND780 billion ($39 million) from a revenue of VND15 trillion in the first ten months of the year. The core businesses’ growth rate of PVS this year rose to over 20 percent year-on-year. PVS closed 2.84 percent lower at VND20,500 on the Ho Chi Minh Stock Exchange on Saturday.


PetroVietnam Joint Stock Finance Corporation (PVF) will likely to achieve thousands of billions of Vietnam dong from exporting crude oil, while PetroVietnam Insurance Joint stock Corp. (PVI) is providing insurance services to a large amount of clients, which are PetroVietnam Group’s subsidiaries and partners.


“There are 25 oil and gasoline firms listing on both exchanges in Ho Chi Minh City and Hanoi. They have a great chance of earning big bucks as local consumer demand for oil this year remains high and the global crude oil price is increasing,” said a director of a HCMC-based brokerage.

Source: SGGP

PetroVietnam’s capital withdraws to hit stock market, experts say

In Uncategorized on January 8, 2011 at 4:27 am

The oil and gas giant PetroVietnam’s capital withdrawals will effect the stock market in short-term and give a boost to some of its subsidiaries opportunities, financial experts said.

(Photo:Minh Tri)

The Vietnam Oil and Gas Group, known as PetroVietnam, early this year began to withdraw its capital in its subsidiaries, which are not in the group’s core businesses.


The state-owned oil and gas giant also announced it would cut 51 percent of its holdings in the member companies specific in the group’s key fields


The move came from the state-owned gasoline supplier’s attempt to restructure its business model, of which the group will focus on mining and refining oil, according to PetroVietnam’s deputy general director Nguyen Ngoc Su.


The plans come at a time when market developments have facilitated the State’s withdrawal of investment in listed companies such as PetroVietnam Finance (PVF), Phu My Fertilizers (DPM) and Petroleum Technical Services Corp (PVS), baobariavungtau website quoted Su as saying.


The deputy director said PetroVietnam has “basically completed” their plan on restructuring and renewing its subsidiaries, with 14 units being equitised. So far, PetroVietnam has successfully auctioned more than 313 million shares, bringing in VND17,54 trillion (US$986.4 million).


Financial experts said PetroVietnam’s capital withdrawals would affect the slumping stock market, as well as share prices of its listed subsidiaries. However, selling shares in the firms not specific in core businesses will help the oil and gas group to regain a large amount, which will be reinvestments in current projects.


Stock analysts said oil stocks are among the market’s gainers in both short and long term. Listed enterprises specific in mining oil and renting rigs remain in black during the global economic turmoil, and will be the first ones growing sharply when the economy recovers, analysts said.


At present, two subsidiaries of the group including PetroVietnam Technical Services Joint Stock Corp. (PVS) and PetroVietnam Drilling and Well Services Joint Stock Company (PVD) are achieving healthy earning so far this year.


The former made a pretax profit of VND780 billion ($39 million) from a revenue of VND15 trillion in the first ten months of the year. The core businesses’ growth rate of PVS this year rose to over 20 percent year-on-year. PVS closed 2.84 percent lower at VND20,500 on the Ho Chi Minh Stock Exchange on Saturday.


PetroVietnam Joint Stock Finance Corporation (PVF) will likely to achieve thousands of billions of Vietnam dong from exporting crude oil, while PetroVietnam Insurance Joint stock Corp. (PVI) is providing insurance services to a large amount of clients, which are PetroVietnam Group’s subsidiaries and partners.


“There are 25 oil and gasoline firms listing on both exchanges in Ho Chi Minh City and Hanoi. They have a great chance of earning big bucks as local consumer demand for oil this year remains high and the global crude oil price is increasing,” said a director of a HCMC-based brokerage.

Source: SGGP

Limiting building houses to fight overpopulation, experts say

In Uncategorized on January 8, 2011 at 4:12 am




Limiting building houses to fight overpopulation, experts say


QĐND – Monday, January 03, 2011, 20:38 (GMT+7)

The Ministry of Construction has made an adequate suggestion of allocating the country’s land fund to apartment buildings and limiting the amount of houses in an attempt to cope with the overpopulation, property experts said.


The Ministry of Construction has just suggested allocating the country’s land fund to apartment buildings and limiting the amount of houses in an attempt to cope with the overpopulation.


Statistics from the ministry show there are more than 22 million residential properties nationwide, with houses making the largest part.


“People struggle to buy houses in cities as the amount of available lands is getting low with price surging too high. Therefore, building more houses will waste money and the country’s land fund,” said a property expert.


“Most of local people tend to speculate on property, considering it as the best asset class. People in developed countries, in contrast, only rent houses or pay by installments for a house in many years.”


The expense for building a house remains pretty high. Therefore, allocating the land fund to apartment buildings is the most adequate solutions to lower apartment prices,” said Nguyen Van Hiep, vice director of the Ho Chi Minh City Department of Construction.


The number of apartment buildings in Vietnam just increased steeply in the last 10 years, according to house builders. Among the most comfortable factors apartment dwellers enjoy is the green areas at every buildings.


However, some analysts said local people prefer houses, which are considered as a better investment than apartments.


“Front houses on main streets can be good places to open shops and offices. Some apartment buildings meanwhile are not quite safe and modern. Many apartment dwellers complaint builders set up too many unreasonable fees,” said a director of a HCMC-based property firm.


The Ministry of Construction should improve town planning, instead of restraining the amount of houses, said property experts and residents dissatisfied with apartment building.


“There should be various types of residential properties in a city. The government should encourage apartment building builders, as well as support property firms building houses for low income earners,” a property expert said.


In related news, public lands including dock warehouses and factories alongside Tau Hu and Doi channels in HCMC’s District 8 will be removed to make space for apartment buildings, according to the People’s Committee.


Around 16,000 slum housings of the district will be relocated to new apartment buildings in the period between 2011 and 2020, the committee said.

Source: SGGP

Source: QDND

Local retailers overtake foreign chains, experts say

In Uncategorized on December 24, 2010 at 4:28 am

The number of wholly-foreign owned retailers in Vietnam remains limited after the Southeast country opened the distribution and retail market under its World Trade Organization commitments in January 2008.

(Photo:Minh Tri)

Despite weaker financial potential, technology and management skills, local retailers are now still outnumbering foreign chains in supermarket segment, analysts said.


Vietnam’s biggest supermarket chain Saigon Co.op opened 50 supermarket nationwide, an increase of 22 in the last two years. Its revenue growth rate is up to 35-40 percent per year.


Following is Maximark opening five outlets in Ho Chi Minh City and Nha Trang with an average area of 10,000 square meters at least.


“We [local retailers] are now confident that our supermarket system can compete with foreign chains,” said Nguyen Thi Phuong Thao, director of the HCMC-based Maximark Cong Hoa.


Analysts said some local retailers teamed up with foreign counterparts, including G7 Trading and Service JSC and Japan’s Ministop.


Local retailers completely overtook foreign players in home appliance segment. Four leading retailers including Saigon Co.op, Hapro, Satra and Phu Thai Group cooperated with in each others to set up Vietnam Distribution Associate Network Development and Investment JSC, marking a milestone in the development of Vietnam’s retail sector.


“Local retailers’ biggest weakness is technological infrastructure, human resource and trading skill. But we have good knowledge of consumer culture, as well as getting the government’s preferential policies,” said Phan The Rue, chairman of the Vietnam Retailers Association.


Though the share of modern retail sales in Vietnam is less than 20 percent now, experts expect it to grow rapidly. Statistics showed 50 percent of households in big cities preferred to shop at traditional markets.


Analysts said traditional retail outlets still have an edge over supermarkets as their distribution network is wider. Some traditional markets including HCMC’s Ben Thanh, Hue’s Dong Ba and Hanoi’s Dong Xuan are popular and located at downtown area.


A food supplier in HCMC said his firm’s sales from tradition markets make out of nearly 50 percent of the monthly figure.


“Vietnam’s retail market remains a combination of traditional markets and shopping centers. However, consumers will be gradually familiar with supermarkets’ convenience and modernity, and then they will switch their shopping habits,” said Richard Leech, executive director of CBRE Vietnam.


Experts said consumers have to deal with many issues when shopping at traditional markets, including fake products and inconvenient shopping environment.
 
Vietnam’s sales of retail sector are estimated to reach more than VND1.44 trillion (US$72 billion) this year, an increase of 20 percent year-on-year. The U.S.’s market research firm RNCOS expects Vietnam’s retail market will likely to reach US$85 billion in 2012.


The Southeast country fell to the 14th position this year after being ranked at sixth among the 30 best emerging markets for retailers in 2009 by global management consulting firm A.T. Kearney.

Source: SGGP

Moody’s downgrade imprecise, but helpful, economist say

In Uncategorized on December 21, 2010 at 9:30 am

Moody’s cutting the foreign currency deposit ratings of six Vietnamese banks to B2 from B1 is not precise, but it is a helpful warning, said Dr. Le Xuan Nghia of National Financial Supervisory Commission (NFSC).

(Photo:Minh Tri)

Nghia said Moody’s rating is based on four factors, including the heightened risk of a balance of payments crisis, accelerating inflation, a falling currency and debt distress from the state-run shipbuilder Vinashin.


“The rating is imprecise as the country’s trade deficit this year will likely to reach US$10-11 billion, much lower than last year’s $13.5-14 billion,” the NFSC’s vice chairman told Dau Tu Tai Chinh newspaper.


“Export turnover grew around 25 percent, already higher than this year’s target of 12 percent. The balance of payments deficit was reduced sharply to $2.3-2.5 billion so far this year, compared with last year’s $8.8 billion,” he said.


Moody’s expected Vietnam’s inflation would likely to climb to 10-11 percent, but the figure actually was around 8.6 percent this year, Nghia noticed.


“The debt from the state-run shipbuilder Vinashin was reportedly up to $4.4 billion, but the amount was actually much lower, equal to one fourth of the reported figure or less in accordance with Vietnam’s debt measuring method,” the vice chairman said.


NFSC’s Nghia also added that Vinashin didn’t go bankrupt and the debt would be paid in mid-term.


“Moody’s downgrade will surely make bad impacts to Vietnam’s bond market. Enterprises will have to be cautious on their plans to issue bonds at foreign markets in early next year. Both foreign direct and indirect investments into Vietnam will be also hit,” Nghia noticed.


He said three out of six lenders mentioned by the US-based credit rating agency are in Vietnam’s ten best banks, so their risks of foreign currency deposits remain at low levels. They include Bank for Investments and Developments of Vietnam, Asia Commercial Bank and Techcombank.


“There are shortcomings in the agency’s rating in term of Vietnam’s actual situation. However, it is a warning that policy makers should take into consideration”


Moody’s Investors Service last week cut the foreign currency deposit ratings of six Vietnamese banks to B2 from B1 with a negative outlook, after cutting the country’s sovereign rating, according to Reuters.


Moody’s also lowered by one to two notches the Baseline Credit Assessments and the associated Bank Financial Strength Ratings of all six banks, Reuters quoted the rating agency as saying.


All the banks are based in Hanoi, except for the Asia Commercial Bank, which has its headquarters in Ho Chi Minh City, Vietnam’s commercial centre.


The move came after Moody’s lowered Vietnam’s sovereign bond rating to ‘B1’ from ‘Ba3’ and the foreign currency bank deposit ceiling to ‘B2’ from ‘B1’ last week.

Source: SGGP

New treatments set to boost capital market’s liquidity, officials say

In Uncategorized on December 16, 2010 at 10:09 am

Many regulations will be released to boost Vietnam’s bond market, which has a healthy growth rate and a low liquidity, officials said.

A woman watches share prices updated on a computer screen at a HCMC-based brokerage (Photo:Minh Tri)

Deputy financial minister Tran Xuan Ha said it was necessary to set up tax exemptions for bond trading and focus on boosting the market’s liquidity. The Ministry of Finance released regulations on issuing bonds with large amounts and buying back bonds to increase the debts’ liquidity.


The ministry also speeded up the equitization and submitted plans on gradual sales of the state-owned shares to the government.


Statistics shows that bonds worth VND100 trillion (US$5 billion), mainly treasury bonds, were issued this year. However, only commercial banks were the buyers. Economists said the bond market’s liquidity was very low in the last 10 years.


The Asian Development Bank said in its recent report that Vietnam’s corporation bond market grew fastest among other countries in the region in the third quarter of 2010.


Corporation bond’s growth rate this year rose 51.9 percent year-on-year, almost double of the government bond’s 25.5 percent. However, in the third quarter of the year, corporation bond’s issue value fell 68 percent year-on-year, while government bond’s issue value dropped 43.6 percent year-on-year.


Despite its fast growth rate, Vietnam’s bond market with $15 billion in unpaid bonds at the end of September remains small compared with other countries in the region. Of the amount, government bonds are worth $14 billion.


Recovering stock market
Both stock markets in Hanoi and Ho Chi Minh City roared back last week as the investor confidence was restored. The daily trading volume at the two bourse reached an average amount of more than VND2 trillion ($100 million).


Analysts said the increasing trading volume showed investors pumped more money into market. Some brokers warned the stock market was overheated as many shares rose by the daily trading band of 5 percent for many days.


The Hanoi-based brokerage FPT expected the market would make corrections, as investors would take profits from the current winning streak.


However, financial experts said the market is often bullish at yearend. Foreign investors continued to be sellers recently, but they dumped penny shares only to restructure their portfolio, experts noticed.

Source: SGGP

It’s not a good time to buy gold now, experts say

In Uncategorized on December 16, 2010 at 10:04 am

Gold traders were hesitate on investing more in the precious metal as the physical gold carried high risk of losses in the last two weeks, analysts said.

(Photo:thanhniennews)

The global gold price’s trading band fluctuated in low rates last week, closing at US$1,350 per ounce. The local price meanwhile remained unchanged at VND36 million per tael.


The gap was narrowed on the fact that Vietnam’s central bank has granted more quotas to import gold by year-end, in a bid to cool domestic gold prices and interest rate jumped to 16-18 percent per annum.


Gold experts expect the global gold price will reach the resistance level of $1,424 per ounce as it closed at $1,410 per ounce last weekend.


They also recommended that gold was overbought, so investors should be cautious in restructuring their investment portfolio.


Local gold price remained around VND300,00-400,000 higher than the global one. However, the local price will likely to retreat on imported gold tax rate of zero percent, interest rate of 16 percent per year and the recover of the stock market.


Gold traders expect the global price will make corrections this month, which is the festival season at many foreign countries around the world.


Experts also predicted that the yellow metal will remain the best asset class with high profit rate in the upcoming time as the global gold price will likely to hit the level of $1,600 per ounce.


Global gold on a rise
The global gold price opened at $,353-1,357 per ounce and closed higher at $1,414 per ounce last week on a job report. Statistics showed the number of non-agriculture jobs last month increased only 39,000, much lower than the expectation of 140,000-155,000 jobs, while unemployed rate rose unexpectedly to 9.8 percent.


Gold steadied on Monday after rising nearly 2 percent in the previous session to above $1,400 an ounce, with a struggling U.S. dollar that pushed silver to its highest since early 1980 likely to spur more buying from investors, according to Reuters.


Any signs of a weaker U.S. economy or heightened tensions between the two Koreas could also bolster gold, while worries about euro zone sovereign debt remain on investor minds.
South Korea started live-fire naval exercise on Monday, despite Pyongyang’s warnings against conducting the drills in disputed waters off the west coast of the peninsula.


Spot gold rose to $2.15 an ounce to $1,416.50 by 0709 GMT, having hit a low around $1,408. Gold had risen as high as $1,415.36 on Friday as the dollar tumbled following disappointing jobs data in November.


Bullion hit a record high around $1,424 an ounce in November.

Source: SGGP

Investors trapped with market reports, stock experts say

In Uncategorized on November 27, 2010 at 11:20 am

Many securities companies and institutional investors were trying to trap investors with their inaccurate analysis and unreliable recommendations, experts say.

Investors watch share prices at the Ho Chi Minh Securities Corporation (Photo: Minh Tri)


 


The Ho Chi Minh City Stock Exchange’s VNIndex may climb as high as 700 “at some point during this year,” and return within two years to the 1,000 level that it last touched in 2007, Kevin Snowball, chief executive of PXP, said in an interview in July.


 


But financial experts said the fund’s analysis was unreliable as the gauge of 270 companies and five mutual funds listed on Vietnam’s biggest stock market remained gloomy, closing at 439.85 points on Thursday.


 


PXP Vietnam Emerging Equity Fund Ltd. is among the big sellers this month. According to the Ho Chi Minh City Stock Exchange’s website last week, the fund failed to sell its shareholding in Southern Seed Corporation (SSC), Binh Thanh Import Export Production and Trade Joint Stock Company (GIL) and Transforwarding Warehousing Joint Stock Corporation (TMS) because of plunging share prices.


 


VN Direct Securities Ltd. last week warned in its report that the market was experiencing “a short-term panicky time” due to increasing interest rates and pressures on repaying loans against shares. Therefore some brokers and investors will sell shares strongly, the Hanoi-based broker said.  


 


“There is no way to know which amounts of money flowing on the market are individual investments or loans against shares. So how could VN Direct be sure that the market is under pressure on repaying loans against shares?” a stock market analyst, who wants to be unnamed, said.


 


He also said securities firms shouldn’t release incorrect analysis, which could hit the market’s sentiment.  


 


Some big shareholders in listed companies announced on the Ho Chi Minh City Stock Exchange that they would buy back shares as share price is pretty low, according to the exchange’s website.


 


But financial experts said some listed companies’ directors tried to restore investors’ confidence by negotiating with big shareholders, buying back shares from to sell shares at low prices and then sell out when the market recovers.


 


Investor confidence was also anxious by market analysis of brokers, which are run by listed companies.


 


Petro Vietnam Securities Incorporation (PSI) early last week recommended investors to buy PFL shares of the PetroVietnam Finance Land JSC, which was predicted to increase to VND18,559 per share. The construction firm, listed on the Hanoi Stock Exchange, remained unchanged at VND12,000 on Thursday.


 


Many investors however didn’t buy the broker’s recommendation as they were afraid it was trying to help PFL shareholders to sell out in the recent slumping market. “Both PSI and PFL are subsidies of the gasoline maker Petro Vietnam, which sold its holdings in listed subsidies recently. So I think there will be a strong selling of PFL shares soon,” said an individual investor in Ho Chi Minh city.   


 


A director of a HCMC-based broker disclosed many securities firms tended to release optimistic market reports in an attempt to keep their clients.  

Source: SGGP

Muslims say Obama failing to keep Cairo promises

In Uncategorized on November 12, 2010 at 5:23 am

Qantas A380: French experts say fault at rear of engine

In Uncategorized on November 5, 2010 at 10:54 am