Vietnam's stock market reclaimed the 1,000-point level on Tuesday, stemming a slide in recent sessions, as investors sought stocks with strong earnings potential such as information technology firm FPT.
The VN Index on the Ho Chi Minh City Securities Trading Center gained 2.7% to close at 1,022.4 points.
The index is now up 3.4% up from last Thursday, when it fell below 1,000 points for the first time on fears that the market was overheating. The index has surged 36% so far in 2007.
"Investors showed a strong appetite for shares of FPT thanks to its profitability last year and a high business growth forecast this year," a market analyst in Hanoi said.
Shares in FPT, the country's largest listed company, climbed 4.1% to close at 630,000 VND ($39), taking its market capitalisation to nearly US$2.4 billion US$.
FPT said last week that strong hardware sales, including mobile phone handsets, boosted its 2006 net profit by 77.5% to 33mio US$, or 10% above its forecast.
The company has forecast profit and sales growth this year and 2008 of 40-50%, thanks to outsourcing and new lines of businesses including telecommunication services.
Another winner on Tuesday was PV Drilling whose shares rose limit up or nearly 5% to close at 279,000 VND (17.3 US$). The firm is the oil service arm of state oil and gas company Petrovietnam.
Government regulators said this month they were concerned about speculators driving up share prices, while fund managers told a capital markets conference in Hanoi that the market was overheated and due for a correction after it climbed nearly 145% in 2006.
They said intense speculation by foreign and domestic investors, or "hot money", had created an artificial shortage of stock.
Source: Reuters
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