VN stocks decline second day
VN stocks decline second day
Vietnamese shares yesterday slipped for a second day on the two local exchanges as energy stocks fell amid declining oil prices.
The benchmark VN Index on the HCM Stock Exchange lost 0.8 per cent to close at 536.45 points. The southern index has declined by 1.6 per cent in the past two days.
The HNX Index on the Ha Noi Stock Exchange was down 0.5 per cent to end at 75.86 points, extending its two-day decline to 1.3 per cent.
The energy sector index lost 2.1 per cent yesterday, pulling the markets down, as global crude prices dropped amid waning hope for production cuts by the Organisation of Petroleum Exporting Countries (OPEC) and non-OPEC producers.
US benchmark crude West Texas Intermediate (WTI) lost another 3.3 per cent to trade at US$30.58 a barrel while London-traded Brent crude fell 3.1 per cent to $33.17 a barrel.
WTI price has slipped 9 per cent in two days and Brent crude price has slid 4.5 per cent.
Local energy stocks recorded big losses yesterday. PetroVietnam Gas Corporation (GAS) slumped 4 per cent, PetroVietnam Drilling and Well Services Corporation (PVD) lost 4.3 per cent and PetroVietnam Mud Drilling Corporation (PVC) fell 5.8 per cent.
Meanwhile, both local markets were also driven down as investors were worried about a possible weaker Vietnamese dong in order to guarantee competitiveness for local-made products after the two largest economies, the US and China, announced low industrial production pace for January.
Yesterday, Viet Nam's central bank raised its reference mid-point rate for exchange trading band by VND2 to trade VND21,894 for a US dollar with a limit of 3 per cent on either sides for local banks to decide their trading values. The mid-point rate has increased VND13 in two days.
The banking sector index inched down 0.3 per cent, led by Vietcombank (VCB), BIDV (BID) and Sacombank (STB), which dropped 0.7 per cent, 0.6 per cent and 0.9 per cent, respectively.
Market liquidity remained low ahead of next week's Tet holiday, Sai Gon-Ha Noi Securities Corporation (SHS) wrote in a report.
The two local markets traded more than 128 million shares worth VND1.7 trillion ($76.8 million), a decrease of 18 per cent from Monday's figure.
