Energy stocks buoy market for third day
Energy stocks buoy market for third day
Vietnamese shares continued to rise on both local markets yesterday, extending gains for a third session, as increasing oil prices lifted energy stocks.
The benchmark VN Index on the HCM Stock Exchange advanced 0.6 per cent to finish at 618.44 points. The southern market index has jumped 4.6 per cent in the last three trading days.
The HNX Index on the Ha Noi Stock Exchange rose 0.5 per cent to end at 81.92 points, climbing a total of 1.1 per cent in the last three sessions.
The energy sector took a turn to lead markets up as oil prices continued rising after output disruptions among global producers reduced crude supply before the Organisation of Petroleum Exporting Countries (OPEC) holds its meeting on Thursday.
US crude West Texas Intermediate (WTI) edged up 0.2 per cent to trade near US$50 a barrel, a slight increase from last week's closing price of $49.33 a barrel. WTI crude has recovered nearly 89 per cent since its twelve-year low in February.
Among local energy stocks, PetroVietnam Gas Corp (GAS) and PetroVietnam Drilling and Well Service Corp (PVD) surged 5.3 per cent and 6.4 per cent, respectively, and others gained between 1.4 per cent and 2.7 per cent.
The markets were also supported by companies that provided good business news to lift investor confidence.
Steel producer Hoa Sen Group (HSG) surged 7 per cent and Da Nang Rubber JSC (DRC) jumped 4 per cent on expectations that these stocks will be added into the portfolio of the investment fund FTSE Vietnam Index, which will be announced late on Friday.
Becamex Infrastructure Development JSC (IJC) also amazed investors, closing 6.1 per cent higher after the company announced it would buy back more than 139 million shares for VND10,000 per share. That buyback price was 13 per cent higher than the share's closing price yesterday.
However, local market indices were prevented from making higher gains as property and brokerage stocks suffered from profit-taking pressure, especially after they made recent gains.
Among property firms, Vingroup JSC (VIC) slipped 1.9 per cent from a two-day jump of 4.9 per cent, and Khang Dien Investment and Trading House JSC (KDH) edged down 0.4 per cent after rising 3.1 per cent in the previous five sessions.
Sai Gon Securities Inc (SSI) retreated 0.5 per cent from a two-day gain of 5.4 per cent, and IB Securities JSC (VIX) slumped 3.8 per cent after jumping 6.7 per cent in the previous two sessions.
Both local markets traded nearly 196.7 million shares worth VND2.97 trillion ($132 million), an increase of one-fifth from Monday's trading value.
