Energy stocks lead market decline
Shares extended losses in the two markets on November 27 due to slumping energy stocks on par with the decline in global oil prices.
Investors trace market fluctuations at An Binh Bank's stock trading floor in Hanoi (Source: VNA)On the HCM Stock Exchange, following the previous session's 0.9 percent decline, the VN-Index fell another 1.3 percent to close at 582.7 points.
On the smaller exchange in Hanoi, the HNX-Index fell by 0.5 percent to finish the session at 81.5 points, slightly bigger than Thursday's 0.2 percent loss.
Energy stocks led the market fall when all of the five listed oil and gas stocks lost value. PV Gas (GAS), the third biggest stock by market capitalisation, dropped 4 percent. PetroVietnam Drillings and Wells Service Corp (PVD), also in the top 30 shares by market capitalisation and liquidity, decreased by over 0.6 percent. Other energy stocks fell between 1 percent and 2 percent.
"Trade on oil and gas stocks heavily depends on the movements of global oil prices," said Hoang Thanh Tung, an analyst at Royal Securities Company.
Oil prices edged lower on Thursday after a six-day rally amid fears of a supply glut. The US benchmark crude oil, West Texas Intermediate (WTI), slipped 1.4 percent to 42.45 USD a barrel and Europe's crude benchmark, Brent oil, decreased 0.4 percent to 45.30 USD a barrel.
Crude oil prices fell 45.5 percent in the last twelve months and sits 64.4 percent beneath its five-year peak.
It was therefore not shocking that most of energy stocks followed suit with substantial losses in the last year. PV Gas shares declined by 37.8 percent in value since January; PVD decreased by 47.2 percent; and stocks like PetroVietnam Technical Services (PVS), PetroVietnam Drilling Mud (PVC) and PetroVietnam Coating (PVB) saw shares down between 17 percent and 24 percent.
"This is a good time for long-term and value investors to buy energy stocks as the share prices are lower than the real value of these businesses," Tung said. He noted that the prevailing 5:8 price-earnings ratio of energy stocks, which is much lower than the average of 12:4 on the HCM Stock Exchange and 9:7 on the Hanoi Stock Exchange.
Except for Vinamilk (VNM), Vietnam's largest dairy producer and biggest listed stock, which gained 0.8 percent, the 10 biggest stocks lost value.
Overall the market condition was negative with 40 percent of 680 trading stocks declining and 22 percent reporting gains.
A total of 207.4 million shares with a total value of 2.76 trillion VND (123.2 million USD) were traded in the two markets on November 27, down 9.4 percent in volume and 1.4 percent in value compared to the previous day's figures.-VNA
You should also see
Airports to offer 9,000 domestic flights during upcoming holidays
Vietnamese airlines are expected to operate 9,000 flights on domestic routes to meet the travel demand during the upcoming National Reunification Day (April 30) and May Day (May 1) holidays, according to the Airports Corporation of Vietnam (ACV).
See more
Business
Long An, Dong Nai introduce strengths in RoK
The southern province of Long An and Dong Nai introduced their investment climate as well as socio-economic development orientations at an investment promotion conference held in the Republic of Korea (RoK) on April 26.
Business
Vietnam makes initial efforts to approach creative industries: CIEM
Vietnam has made initial efforts to approach creative industries and services, particularly a policy framework related to creative economy development, according to a new report released by the Central Institute for Economic Management (CIEM).
Business
HCM City wants to become major partner, customer of NVIDIA: Official
Chairman of the People’s Committee of Ho Chi Minh City Phan Van Mai has told the Vice President of Worldwide AI Initiative at NVIDIA, Keith Strier that the city wants to become a major and good partner and customer of the firm in Vietnam.
Business
Revenue on top five e-commerce platforms jumps 79%
The e-commerce market of Vietnam was robust in the first quarter of this year with total revenue of the top five platforms, including Shopee, TikTok Shop, Lazada, Tiki and Sendo, reaching more than 71 trillion VND (2.79 billion USD), an increase of 79% over the same period last year, according to a recent report by Metric.
Business
Vietnam needs drastic reforms to create firm ground for economic growth: experts
Drastic institutional reforms are needed to create firm ground for economic growth in the context that persistent challenges, both external and internal, still cloud the growth prospect, experts have said.
