Shares sink as energy loses steam
Shares sink as energy loses steam
Shares edged down yesterday on the two exchanges as energy lost steam despite an oil industry agreement on a production cut.
The benchmark VN-Index on the HCM Stock Exchange inched down 0.2 per cent to 665.1 points, erasing Thursday’s gain of 0.2 per cent. The Index slipped 1.6 per cent for the whole week.
On the Ha Noi Stock Exchange, the HNX-Index closed down 0.5 per cent at 81.2 points. The gauge decreased 0.2 per cent this week.
After Thursday’s momentum, oil and gas stocks such as PetroVietnam Drilling and Wells Service (PVD), PetroVietnam Technical Services (PVS), PetroVietnam Drilling Mud (PVC) PetroVietnam Coating (PVB) all slipped between 0.8 per cent and 2.2 per cent.
The largest oil stock PV Gas (GAS) was also down 0.9 per cent. Only Petroleum Equipment Assembly & Metal Structure (PXS) gained marginally.
According to Tran Hai Yen, stock analyst at Bao Viet Securities Co, increases in global oil prices in recent days were a short term reflection and in the long term, oil prices would still depend on demand and supply, especially on demand which is volatile and unpredictable.
“In addition, the compliance level among OPEC members is also a factor which should be kept in mind,” Yen wrote in a note.
“Prospects for oil and gas stocks therefore need more time to be observed to have better analysis,” she added.
On the other end of spectrum, financial, steel and realty shares continued their upward movements and cushioned the market.
Gainers included Vietcombank (VCB), Military Bank (MBB), Sacombank (STB), HCM Securities Corp (HCM), steelmakers Hoa Phat Group (HPG), Hoa Sen Group (HSG), Tan Tao Investment Industry (ITA) and Kinh Bac City Development (KBC). All were among the top 30 shares by market capitalisation.
Overall market conditions were negative as the number of losing shares outnumbered gaining ones by 232-170. 292 stocks closed flat.
Liquidity increased slightly with nearly 179 million shares worth VND3.5 trillion (US$154.2 million) traded in the two markets, up 3.2 per cent in volume and 9.4 per cent over the previous session.
Foreign sectors continued to offload local shares on the two exchanges, responsible for a total net value of VND142.6 billion. They focused sells on large-cap stocks as their most-sold stocks were the 10 highest valued stocks on the HCM Stock Exchange.
Vinamilk (VNM) again topped the list with net sell value of over VND55 billion.
