VietNamNet Bridge – Despite the rapid-fired good news about the macro economy, stocks remain dirt cheap. The VN Index could not stay firmly at the 500 point threshold, while HNX Index could not emerge to the 62 point level.

Analysts have noted that the current factors back the rise of the stock market. The bank interest rates have been on the decrease, thus paving the way for businesses to access bank loans to expand their production.

Meanwhile, the cash flow has been heading for the stock market, as the gold price has been decreasing and the real estate market remains gloomy. Investors do not put high hopes on the dollar trade, because the dong/dollar exchange rate has been stabilized in long term.

Especially, the best piece of news is that the Vietnam Asset Management Company (VAMC), a superb company in charge of trading bad debts, has started its operation.

However, all that good news is not enough to give a push to the stock prices.

Unprofitable businesses’ stocks also listed as blue chips

One could not imagine that the shares of unprofitable enterprises--the share prices of which are not high enough to buy a bunch of vegetables, have also been listed among the good commodities in the stock market.

The Hanoi Stock Exchange has informed about the changes with the HNX30 basket, the group of 30 best stocks on the Hanoi bourse. The FLC shares will be delisted from July 30, since they will be listed on the HCM City bourse. Meanwhile, PV2 shares would be put into HNX30 instead.

As such, PV2 has come back as one of the 30 best stocks on the Hanoi Stock Exchange right after it was weeded out from the list in May because it could not meet the standards set by the stock exchange.

What worries the investors now most is that it’s really very difficult to select tens of best shares among the 700 stocks listed on the market. A lot of the selected shares belong to the enterprises which do not have good business result as expected. Especially, some of the shares are just a little more expensive than a bunch of vegetable.

PV2 share is an example. The enterprise’s Q2 report showed the same bad business performance as that of the four previous quarters. It incurred the loss of VND12.8 billion in the second quarter, the highest loss since it made debut on the bourse, thus raising the accumulative loss in the first six months of the year to VND15 billion.

Though the net turnover of the enterprise jumped by 500 percent from the same period of the last year, but it was just less than VND5 billion, a modest figure if compared with its capital of VND370 billion.

There are no high quality goods to buy

Not only PV2, many other shares of unprofitable enterprises have also been found in HNX30, which has raised big worries among investors about the quality of the “commodities” in the stock market.

PVV share of Vinaconex had fallen down to VND2,900 per share by July 26 trading session, while it was traded at VND4,000 one month ago.

HNX30 also includes BCC, which is now traded at VND5,100 per share, PVE (VND5,300) which made a modest profit of hundreds of millions of dong in recent quarters, PVX (VND4,500) which incurred big loss in the last four quarters, PVL (VND2,900) which took loss in the last five quarters.

Manh Ha