Energy stocks hold up VN markets
Energy stocks hold up VN markets
Vietnamese shares struggled to stay in positive territory yesterday as the energy sector benefited from a recent recovery in global oil prices.
Local market indices were almost flat. The benchmark VN Index on the HCM Stock Exchange ended at 611.89 points, extending slight gains for a second day, and the HNX Index on the Ha Noi Stock Exchange rebounded to close at 81.27 points.
Local energy firms were the centre of attention yesterday as they received a strong boost from continuous gains in global prices over the last three days.
US crude West Texas Intermediate (WTI) and London-traded Brent crude gained 1 per cent each to trade at above US$49 a barrel.
US crude has increased by 2.8 per cent in the last three sessions and Brent crude has added 1.5 per cent in the last two trading days.
Energy stocks rose between 1.1 per cent and 1.8 per cent, including PetroVietnam Gas Corp (GAS), PetroVietnam Technical Service Corp (PVS), PetroVietnam Mud Drilling Corp (PVC) and PetroVietnam Drilling and Well Service Corp (PVD).
Additionally, a growth of 0.9 per cent to 156.5 yen per kilo in rubber prices on the Tokyo Commodity Exchange also helped rubber producers like Da Nang Rubber JSC (DRC), Sao Vang Rubber JSC (SRC), the Southern Rubber Industry JSC (CSM), Hoa Binh Rubber JSC (HRC) and Dong Phu Rubber JSC (DPR) increase.
These stocks advanced between 0.3 per cent and 2.6 per cent yesterday.
On the contrary, local markets lacked support from the banking sector as the industry was mixed and leading banks either had slight gains or remained flat.
Vietcombank (VCB) inched up 0.2 per cent while Vietinbank (CTG), the Bank for Investment and Development of Viet Nam (BID) and Sai Gon-Ha Noi Bank (SHB) were unchanged.
On the other side, Asia Commercial Bank (ACB), Military Bank (MBB) and Sacombank (STB) declined between 0.5 per cent and 2.6 per cent.
Banks might have suffered from investors' cautiousness over a weaker Vietnamese dong after the Chinese yuan slumped to its lowest level against the US dollar since March 2011 amid fears that the US central bank will increase interest rates in June. Such expectations have boosted the dollar in recent trading days.
Yesterday, Viet Nam's central bank raised its daily reference mid-point rate by VND11 to VND21,921 for a dollar.
Both local markets traded more than 192 million shares worth VND2.8 trillion ($124 million), an increase of 9 per cent from Tuesday's trading value.
