Monday, August 21, 2017 - 18:55:34

Vietnamese shares lower on oil prices weigh

VNA Print

Investors at the SSI exchange floor in Ha Noi (Photo:VNA)
 

Hanoi (VNA) - Vietnamese shares were slightly lower in HCM City, reversing the previous day's gain, as a drop in global oil prices dragged down energy companies.

The benchmark VN Index on the HCM Stock Exchange fell 0.01 percent to close at 574.38 and the HNX Index on the Hanoi Stock Exchange was down 0.6 percent to end at 80.08 points.

Global oil prices dropped on December 2 after Iran – a leading oil exporter – said it would likely increase its production next year, boosting global crude stockpiles.

The Organisation of Petroleum Exporting Countries, which produces about 40 percent of the world's oil, is scheduled to meet on December 4 in Vienna.

The US benchmark crude West Texas Intermediate (WTI) fell 4.6 percent to trade at 39.94 USD a barrel and the Euro-based Brent crude lost 4.4 percent to trade at 42.49 USD a barrel.

The local energy stock index was down 1 percent on December 3. The biggest energy companies such as PetroVietnam Gas Corporation, PetroVietnam Drilling & Well Services Corporation and PetroVietnam Technical Services Corporation fell from December 2 values.

These three companies lost 1.7 percent, 1.6 percent and 2.1 percent by the end of December 3, respectively.

Meanwhile, agricultural firms such as Hoang Anh Gia Lai Joint Stock Company (HAGL) and its subsidiary HAGL Agriculture Joint Stock Company were the major reasons pulling the agriculture sector down.

HAGL (HAG) dropped 2.4 percent on December 3 as investors, reversing its 5 percent surge on previous day.

HAGL Agriculture Joint Stock Company (HNG) inched down 0.7 percent after its parent company announced it will issue more HNG shares to the parent company's shareholders as a dividend.

On the positive side, the banking sector index extended their gains for a second day following the World Bank's expectation that Vietnam's central bank will not tighten its monetary policy in the near term.

The biggest listed banks made gains on December 3, including Vietcombank (VCB) which was up 1 percent, the Bank for Investment and Development of Vietnam (BID) inched up 0.5 percent, and Sacombank (STB) which jumped 2.7 percent.

Both local exchanges traded more than 167 million shares, worth 2.9 trillion VND (130 million USD), an increase of 47 percent from December 2 value.-VNA

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