VN-Index sets new nine-year high
VN-Index sets new nine-year high
Shares continued to climb Tuesday on the two stock exchanges, backed by strong gains of oil stocks after global oil prices recorded the strongest month of the year.
On the HCM Stock Exchange, the VN-Index increased 0.42 per cent to close at 786.61 points, topping the former nine-year high of 782.65 points of July 6.
Energy stocks drove the market up with the two biggest listed oil companies, PV Gas (GAS) and PetroVietnam Drilling and Wells Service (PVD), advancing 2.6 per cent and 6.8 per cent, respectively.
PVD was among the most active stocks on the southern bourse with more than 8 million shares being traded, despite its negative earnings in the second quarter. The company reported a loss of around VND45 billion (US$16.7 million) in the second quarter, adding up to a total loss of VND246 billion in the first half of this year.
The firm attributed the poor result to a 34-40 per cent decline in the lease of drilling platforms over the past three months.
Global oil prices extended gains on Monday, ending the strongest month of the year, boosted by expectations of US sanctions against Venezuela’s oil sector and waning concerns over the supply in major oil markets.
Brent crude edged up 0.3 per cent to settle at $52.65 while the US light crude oil rose nearly 1 per cent to trade at $50.17 a barrel.
Expansion of other blue chips such as brewery Sabeco (SAB) with a rise of 3.4 per cent, Vietcombank (VCB) up 1.7 per cent and Petrolimex (PLX) up 0.32 per cent largely contributed to the market uptrend.
These shares are among the top 10 largest shares by market value on the HCM Stock Exchange.
On the defensive side, despite positive earnings reports, Vietinbank (CTG), Military Bank (MBB) and Vinamilk (VNM) dropped between 0.4 per cent and 2 per cent.
Overall market breadth was negative with 159 stocks declining, 124 advancing and 58 closing unchanged.
On the Ha Noi Stock Exchange, the HNX-Index edged up 0.14 per cent to 101.33 points.
According to BIDV Securities Co, the market is exposed to a short-term correction risk in the coming sessions after a six-day trading rally due to selling pressure of stocks that have gained significant profit.
Liquidity dropped with a total of 280 million shares worth VND4.6 trillion ($201.3 million) being traded in the two markets, down 19 per cent in volume and 15 per cent in value compared to Monday’s figures.
