Oil stocks lead market for second day
Shares rose for the second day on January 4, boosted by strong gains in the oil and gas sector and investors’ continued faith in optimistic market prospects.
Gas tanks and piles of PV Gas. Oil and gas stocks lifted market on January 4 (Photo: sggp.org.vn)Hanoi (VNA) - Shares rose for the second day on January 4, 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 percent to close the session at 674.7 points, lifting the two-day rally to 1.5 percent.
On the Hanoi Stock Exchange, the HNX-Index slowed down its growth to 0.2 percent on January 4 to settle at 81.5 points. The gauge gained 1.6 percent 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 percent and 2.9 percent, respectively.
Others, including PetroVietnam Drilling Mud (PVC), PetroVietnam Technical Services (PVS) and Petroleum Equipment Assembly & Metal Structure (PXS), increased between 1.3 percent and 3 percent.
Global oil prices fell from the 18-month peak on January 3 following the rise of the US dollar. West Texas Intermediate (WTI) oil closed down 2.6 percent to 52.33 USD per barrel, while Brent crude was down 2.4 percent to 55.47 USD 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 January 4 with 137 million shares worth a combined 2.4 trillion VND (105.7 million USD) traded in the two markets, up 17 percent in volume and 9 percent in value compared to January 3’s levels.
Foreign investors remained net buyers on the two exchanges with total net buy value of 117 billion VND, an eight-fold increase over January 3’s level.-VNA
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