VN shares drop on lower oil prices
VN shares drop on lower oil prices
Vietnamese shares declined yesterday as investor confidence was driven down by lower oil prices and fears over negative economic conditions on the global markets.
The benchmark VN Index on the HCM Stock Exchange fell 1 per cent to finish at 623.58 points, extending a two-day fall of 1.2 per cent.
The HNX Index on the Ha Noi Stock Exchange retreated 0.7 per cent to close at 84.30 points from a ten-month high. The northern market index had risen 9.4 per cent to 84.85 points at the end of last week.
Energy stocks weighed on investor confidence as crude prices slid further after the markets witnessed an increase in the number of active US oil rigs.
US crude West Texas Intermediate (WTI) slipped 1.2 per cent to trade at US$48.48 a barrel, decreasing by 5.4 per cent in the last four trading days from a eight-month high reached on last Wednesday.
London-traded Brent crude was down 1 per cent to trade at $50.03 a barrel, totaling a four-day loss of 4.7 per cent.
PetroVietnam Drilling and Well Services Corp (PVD), Petroleum Equipment Assembly and Metal Structure JSC (PXS), PetroVietnam Coating Corp (PVB) and PetroVietnam Mud Drilling Corp (PVC) were among the biggest losers, falling between 4.2 per cent and 6.5 per cent.
PetroVietnam Gas Corp (GAS), PetroVietnam Technical Services Corp (PVS) and Southern Gas JSC (PGS) also recorded losses yesterday.
"Viet Nam's stock markets went down along with other Asian markets as investors worried over a US rate increase this week, a British exit from the European Union, and recent negative news from the biggest economies," Bao Viet Securities Corp (BVSC) wrote in its daily report.
Investors tried to retreat from local stocks for safe assets such as bonds and gold, BVSC said. Yesterday, foreign investors recorded a net selling value of VND64 billion ($2.87 million) on both local markets, a backward step from a net buying value of VND209.3 billion on Friday.
Low investor confidence pulled large-cap stocks in the real estate, banking, insurance and brokerage sectors down.
Among those firms, insurer Bao Viet Holdings (BVH) slumped 3.1 per cent, Vietinbank (CTG) and the Bank for Investment and Development of Vietnam (BID) were down 1.1 per cent and 1.6 per cent, respectively, and consumer goods producer Masan Group (MSN) lost 1.4 per cent.
Additionally, carpart distributor Hoang Huy Investment Services JSC (HHS), property and retailer firm Vingroup JSC (VIC) and sugar producer Thanh Thanh Cong Tay Ninh JSC (SBT) decreased on expectations that the foreign investment fund VanEck Market Vectors ETF will reduce its ownership of those stocks.
