Oil stocks lead market for second day
Oil stocks lead market for second day
Shares rose for second day on Wednesday, boosted by strong gains in the oil and gas sector and investors’ continued faith in optimistic market prospects.
On the HCM Stock Exchange, the VN-Index added 0.4 per cent to close the session at 674.7 points, lifting the two-day rally to 1.5 per cent.
On the Ha Noi Stock Exchange, the HNX-Index slowed down its growth to 0.2 per cent on Wednesday to settle at 81.5 points. The gauge gained 1.6 per cent in the previous session.
Despite the global oil price slump, domestic oil and gas stocks advanced and lifted the market with most of the large-cap oil companies advancing.
PV Gas (GAS) and PetroVietnam Drilling and Wells Service (PVD), two of the top 30 largest shares by market value and liquidity on the HCM City’s bourse, grew 2.3 per cent and 2.9 per cent, respectively.
Others, including PetroVietnam Drilling Mud (PVC), PetroVietnam Technical Services (PVS) and Petroleum Equipment Assembly & Metal Structure (PXS), increased between 1.3 per cent and 3 per cent.
Global oil prices fell from the 18-month peak on Tuesday following the rise of the US dollar. West Texas Intermediate (WTI) oil closed down 2.6 per cent to US$52.33 per barrel, while Brent crude was down 2.4 per cent to $55.47 per barrel.
Overall market conditions were negative, however, with 191 stocks rising, 220 falling and 288 closing flat.
According to analysts at Vietstock Finance Co, profit-taking sales began to appear and negatively affected market rises. This pressure will likely rise in the next sessions, which could push the market down.
“However, cash flows remain positive, so investors should not be too cautious and can take this opportunity to restructure portfolios,” they wrote in a market report.
The market trend will likely stay positive in the medium term, but the VN-Index needs to surpass the resistance level of 680 points to escape from the short-term recession, Tran Hai Yen, analyst at Bao Viet Securities Co wrote in a note.
Liquidity increased slightly on Wednesday with 137 million shares worth a combined VND2.4 trillion ($105.7 million) traded in the two markets, up 17 per cent in volume and 9 per cent in value compared to Tuesday’s levels.
Foreign investors remained net buyers on the two exchanges with total net buy value of VND117 billion, an eight-fold increase over Tuesday’s level.
