Stock investors are very hopeful of shares in power companies when the sector’s development potential is very big after the Vietnamese government is now going on to call for investment in power projects, state media said.
Pha Lai thermal power plant, or PPC, which is taking the leading position among the listed power firms and biggest one by market capitalization of VND20 trillion and total volume of 326.2 million shares on Hochiminh Securities Exchange, obtained VND704 billion profit in 2006 and VND562.8 billion in first half of 2007. It was now traded at VND60,000.
VSH, meanwhile, has been named among Vietnam’s 5 largest trading volume, with total 125 million shares and total market capitalization of VND6.2 trillion.
Despite the bear market, VSH shares kept rising recently, VSH shares were traded at VND51,000 on investors’ continued buying as it is preparing to invest in two new Hydropower Plants, Kon Tum and Vinh Son II.
The Vietnam stock market now has seven electricity stocks, including four on Ho Chi Minh City bourse and three on Hanoi bourse, with total market capitalization of $2 billion, or 10.8 per cent of that of the whole market, according to Saigon Securities Incorporated’s survey. This is the market’s third largest sector after food production and banking, out of 39 sectors on the market.
Currently, on HOSE are Khanh Hoa Power (KHP), Ry Ninh II Hydropower (RHC), Can Don Hydropower (SJD), and Vitaly (VTA), which are also drawing interest from both foreign and domestic players.
On the Hanoi bourse, the shares of Thac Ba Hydropower Compnay (TBC) have seen trading volume three times higher in recent three sessions than the previous days.
Vietnam is planning to invest about $4 billion a year to develop power generation source and works to meet the country’s growing power demand with annual growth of 15-17 per cent, and the country is warned of facing lacking 4.3 – 10.3 billion kWh of electricity in 2007-2009.
The retail electricity price will be raised to VND890/kWh in 2008, up 4.5 per cent from current level. Companies operating in the sector are expected to gain a high and stable development in the future. (Vnbourse, Laborer)
Vietnamese
