Low oil prices pull markets down
Low oil prices pull markets down
Vietnamese shares fell on both local markets yesterday as lower oil prices pulled energy stocks down and investors tried to take profits from recent gains.
The benchmark VN Index on the HCM Stock Exchange pulled back 1.5 per cent from Wednesday's gain to close at 561.22 points.
The HNX Index on the Ha Noi Stock Exchange lost another 0.5 per cent to finish at 79.05 points. The northern index has slipped 1.7 per cent in the last three sessions.
The energy sector declined as global crude prices retreated on the global exchanges from slight gains Wednesday after US stockpiles expanded to keep supplies at the highest level in the last eight decades amid a global glut.US crude West Texas Intermediate (WTI) fell 1.3 per cent to trade at US$37.81 a barrel and London-traded Brent crude was down 0.5 per cent to trade at $39.07 a barrel.
PetroVietnam Technical Service Corporation (PVS), PetroVietnam Gas Corporation (GAS), and PetroVietnam Drilling and Well Service Corporation (PVD) slumped 5 per cent, 4.7 per cent and 3.3 per cent, respectively.
Meanwhile, investors also tried to take profits from stocks that have made gains recently, including medical equipment providers, plastic producers and steel makers.
Among medical equipment providers, Hau Giang Pharmaceutical JSC (DHG) slumped 4 per cent after rising 2.3 per cent in the previous two days, Traphaco JSC (TRA) declined by 6.1 per cent after gaining 14 per cent in the previous three days, and Domesco Medical Import-Export JSC (DMC) fell 3.5 per cent from a three-day rally of 9 per cent.
In the plastic industry, Dong A Plastic JSC (DAG) dropped 1.5 per cent after it gained 17 per cent in the previous three days, Tien Phong Plastic JSC (NTP) lost 2.3 per cent after increasing 10 per cent during that period, and An Phat Plastic and Green Environment JSC (AAA) slid 4 per cent from a four-day gain of 4.2 per cent.
Steel makers such as Viet Nam Germany Steel Pipe JSC (VGS) and DANA-Italy Steel JSC (DNY) also fell. VGS was down 1.1 per cent from a four-day jump of 22 per cent and DNY decreased by 2.5 per cent after rocketing 60 per cent since the beginning of March.
Other declining large-cap stocks included dairy firm Vinamilk (VNM), food producer Masan Group (MSN), insurer Bao Viet Holdings (BVH) and Vietcombank (VCB). They fell 1.5 per cent, 1.4 per cent, 2.9 per cent and 2.6 per cent, respectively.
Both local markets traded more than 226 million shares worth VND3.47 trillion (US$154.5 million), an increase of a quarter from Wednesday's trading value.
