Shares flat amid oil price jump
Shares flat amid oil price jump
Vietnamese shares fell slightly on both local bourses yesterday, led by plastics firms amid fear that their profitability will be hurt from an increase of global oil prices.
The benchmark VN Index on the HCM Stock Exchange inched down 0.1 per cent to close at 566.35 points and the HNX Index on the Ha Noi Stock Exchange declined by 0.2 per cent to finish at 78.65 points.
Plastics producers fell after the US benchmark crude West Texas Intermediate (WTI) jumped 3.9 per cent yesterday from an eleven-year low to trade at US$36.08 a barrel.
That increase will make local plastic companies spend more to import input materials for their production, reducing their profitability.
As a result, the plastic producer index dropped 1.7 per cent. The biggest companies in the industry that fell included Binh Minh Plastic Joint Stock Company (BMP), which lost 1.5 per cent, Tien Phong Plastic Joint Stock Company (NTP), which was down 1.8 per cent, and Rang Dong Plastic Joint Stock Company (RDP), which fell 0.7 per cent.
However, local energy firms benefited from a rise of WTI crude price. PetroVietnam Gas Corporation (GAS) was up 0.5 per cent and PetroVietnam Drilling and Well Services Corporation (PVD) jumped 2.6 per cent.
In addition, the stocks were undermined by investor cautious as they await a reaction from Viet Nam's central bank selling pressure on the dong, Sai Gon Ha Noi Securities Corporation (SHS) wrote in a report.
As a result, insurer Bao Viet Holdings (BVH) was down 1 per cent, Vietinbank (CTG) fell 1.1 per cent and FPT Corporation (FPT), the conglomerate that operates in various fields including information technology and brokerages, decreased by 0.8 per cent.
Both local bourses traded nearly 130 million shares worth VND1.86 trillion ($82.8 million), a decrease of nearly 26 per cent from Monday's trading value.
