Energy stocks keep VN markets up
Energy stocks keep VN markets up
Shares advanced further on the two local exchanges yesterday, driven by energy stocks’ continuing rise by three consecutive sessions of positive crude trading.
The benchmark VN Index on the HCM Stock Exchange gained 0.3 per cent to close at 705.9 points. The southern market index has risen a total of 0.7 per cent in the last two days.
The HNX Index on the Ha Noi Stock Exchange was up 0.5 per cent to end at 86.43 points. The northern market index has rallied total 1.7 per cent after five trading days.
More than 205 million shares were exchanged yesterday, worth VND3.21 trillion, showing an increase of trading volume and a fall of trading value compared to last week’s daily averages.
The stock market was strongly supported by high investor confidence in energy shares, as oil prices had a three-day rally last week after a report said that members of the Organisation of Petroleum Exporting Countries (OPEC) had strictly committed to its output cut deal.
Oil trading was bolstered after OPEC members reduced 92 per cent of their production in January, followed by a 50 per cent reduction by non-OPEC exporters.
US crude West Texas Intermediate (WTI) finished last week at US$53.86 a barrel, up 3.2 per cent after three sessions. Brent crude closed at $56.7 a barrel after rallying 3 per cent in the same period.
Among local energy shares, PetroVietnam Coating Corp (PVB) hit the daily trading limit of 9.8 per cent, while PetroVietnam Technical Services Corp (PVS), PetroVietnam Mud Drilling Corp (PVC) and PetroVietnam Drilling and Well Services Corp (PVD) ranged between 5.4 per cent and 6.6 per cent.
Mid-cap and penny stocks remained attractive to investors on expectations for better performances in 2017.
Among those shares, property developer FLC Group (FLC) hit the daily trading limit of 7 per cent after FLC’s CEO Huong Tran Kieu Dung told local media that the group targets a doubled revenue in 2017 with an earnings of VND13 trillion from real estate segment.
Expectations for a positive year also helped agricultural group Hoang Anh Gia Lai JSC (HAG) jump 3 per cent after it reported a lower loss of VND302.8 billion in the fourth quarter of 2016, which was an improvement compared to 2015’s number.
FLC and HAG were also the two most active stocks in the market, with more than 21 million shares of FLC and 9.85 million shares of HAG being exchanged.
