VN stocks down on volatile oil
VN stocks down on volatile oil
Vietnamese shares yesterday pulled back slightly in the first trading session after Tet on both local markets as volatile crude prices led energy stocks lower.
The benchmark VN Index on the HCM Stock Exchange and the HNX Index on the Ha Noi Stock Exchange inched down 0.2 per cent each to close at 543.79 points and 76.74 points, respectively.
VN Index had gained 1.5 per cent in the previous three sessions and HNX Index had risen 1.5 per cent in the previous two trading days.
The energy sector continued to suffer from unstable oil prices, which yesterday fell on global markets after a sharp jump on Friday as Iran exported its first cargo to Europe and Chinese crude imports dropped, a sign demand may be weakening in the world's second-largest economy.
US benchmark crude West Texas Intermediate (WTI) retreated 1 per cent to trade at US$29.16 a barrel after a 12 per cent surge on Friday and London-traded Brent crude fell 0.7 per cent to trade at $33.11 a barrel after rising 11 per cent inn the previous trading session.
Among energy stocks, PetroVietnam Drilling and Well Services Corporation (PVD) lost 2.2 per cent, PetroVietnam Technical Services Corporation (PVS) was down 0.7 per cent, and PetroVietnam Mud Drilling Corporation (PVC) fell 1.5 per cent.
These three stocks have dropped 5.2 per cent, 4 per cent and 7.3 per cent since the end of last month.
Meanwhile, declining oil prices had a positive impact on local plastic and rubber producers such as Tien Phong Plastic JSC (NTP), Southern Rubber Industry JSC (CSM), An Phat Plastic and Green Environment JSC (AAA) and Rang Dong Plastic JSC (RDP).
Those stocks gained 0.8 per cent, 2.8 per cent, 4.2 per cent and 2.6 per cent, respectively, as lower oil prices helped them reduce expenses to import materials for production from overseas suppliers.
Viet Nam's central bank yesterday raised its reference mid-point rate for exchange trading band by 12 dong to VND21,873 for a US dollar.
Market liquidity improved slightly from last trading session before Tet, however, it remained low as investors were unwilling to make investments due to the volatility of global financial markets, Bao Viet Securities Corporation wrote in its report.
Both local exchanges traded nearly 98 million shares worth VND1.44 trillion ($64 million), an increase of 14 per cent from the last trading session before Tet.
