Energy stocks lead VN rebound
Energy stocks lead VN rebound
Vietnamese shares rebounded on both local markets yesterday as energy stocks made big gains after Iran backed a Saudi-led proposal to freeze crude output at current levels.
The benchmark VN Index on the HCM Stock Exchange rose 1 per cent to close at the one-month high of 552.49 points and the HNX Index on the Ha Noi Stock Exchange added 0.7 per cent to end at 78.00 points.
Crude extended gains for a second day after Iran showed its support for an agreement on a production freeze between top oil exporting countries, including Russia, Venezuela and Saudi Arabia.
US benchmark crude West Texas Intermediate (WTI) yesterday rose 2 per cent to trade at US$31.28 a barrel. It has gone up 19 per cent since hitting a 12-year low last week.
Meanwhile, London-traded Brent crude increased by 1 per cent to trade at $34.86 a barrel. Brent has gained 16 per cent over the last five sessions.
The energy sector index rose 2.6 per cent. Among gainers, PetroVietnam Gas Corporation (GAS), PetroVietnam Technical Service Corporation (PVS) and PetroVietnam Mud Drilling Corporation (PVC) jumped 5.8 per cent, 3.4 per cent and 4.6 per cent, respectively.
Meanwhile, investor confidence improved after the US central bank signaled it will maintain current interest rates and may change its rate hike plan for this year amid concerns over global economic growth.
The US central bank's plan helped strengthen other currencies against the US dollar such as Japanese yen and euro.
Viet Nam's central bank yesterday raised the reference mid-point rate for its exchange trading band by VND6 to VND21,901 for a dollar. The mid-point rate has risen VND40 since the market reopened after the Tet holiday.
The rise of the reference mid-point rate is expected to help the market reduce speculation of US dollars in the unofficial market and stabilise the monetary market, analysts said.
Improved investor confidence helped boost financial stocks, including banks, securities firms and insurance companies, Sai Gon-Ha Noi Securities Corporation wrote in a report.
The banking sector index added 1.3 per cent, the brokerage sector index rose 1 per cent and the insurance sector index was up 0.8 per cent.
Vietcombank (VCB) went up 1.3 per cent, Vietinbank (CTG) gained 1.8 per cent, insurer PVI Holdings (PVI) rose 1.6 per cent and Saigon Securities Incorporate (SSI) leaped 1 per cent.
Both local markets exchanged nearly 169 million shares worth VND2.5 trillion ($111.5 million), a decrease of 12 per cent from Wednesday's trading value.
