VN market slide ends on oil recovery
VN market slide ends on oil recovery
Shares bounced back on the two local exchanges yesterday from a five-day losing streak, driven by the energy sector following a rebound in oil prices.
The benchmark VN Index on the HCM Stock Exchange went up 0.5 per cent to close at 676.90 points, putting a dent in a five-day decline of 2.2 per cent.
The HNX Index on the minor Ha Noi Stock Exchange also added 0.5 per cent to end at 82.69 points after losing a total 3.8 per cent during the same period.
The VNXAll Index, the common index between the southern and northern bourses, was up 0.4 per cent following a three-day fall of 1.9 per cent.
The energy sector led the market up yesterday after oil prices rebounded slightly on a drop in US crude inventories.
US crude West Texas Intermediate (WTI) advanced 0.4 per cent to trade at US$49.38 a barrel, recovering from a loss of 3.3 per cent since Friday.
London-traded Brent crude added 0.6 per cent to trade at $50.27 a barrel, following a three-day decrease of 3.5 per cent.
Local energy stocks also rose slightly. PetroVietnam Gas Corp (GAS) inched up 0.1 per cent, PetroVietnam Technical Services Corp (PVS) gained 1.5 per cent, and PetroVietnam Construction Corp (PVX) jumped 3.7 per cent.
Rubber companies' stocks performed well, including Phuoc Hoa Rubber JSC (PHR), Dong Phu Rubber JSC (DPR) and Tay Ninh Rubber JSC (TRC) as "the rubber price increased by about 70 per cent year on year and these companies will likely report higher earnings for the third quarter," BIDV Securities Corp (BSC) said in a note.
Property companies' shares also performed well yesterday, including Hoa Binh Construction and Real Estate Corp (HBC), Tan Tao Investment and Industry Corp (ITA), Sai Gon Thuong Tin Real Estate Corp (SCR) and Vingroup JSC (VIC).
HBC added 2.2 per cent, ITA rose 2.1 per cent, SCR was up 1.1 per cent and VIC edged up 0.8 per cent.
On the negative side, banks continued to perform negatively with only Vietcombank (VCB) and Asia Commercial Bank (ACB) making gains, while Vietinbank (CTG), Sacombank (STB), Bank for Investment and Development of Viet Nam (BID) and Eximbank (EIB) declining.
"Market trading liquidity continued to slide, proving that yesterday's recovery would not likely extend in coming sessions," BSC said.
More than 120.4 million shares were traded yesterday, a decline of nearly 15 per cent from Wednesday. Trading value was VND1.95 trillion ($86.9 million), falling nearly 5 per cent from the previous session.
