Sunday, August 20, 2017 - 16:32:26

Vietnamese stocks up amid crude volatility

VNA Print

​Investors follow stock transactions at the Saigon Securities Inc in Hanoi (Photo: VNA)

Hanoi (VNA) - Vietnamese shares on January 27 rebounded on both local markets from previous day's drop as energy stocks extended rallies amid volatile crude oil prices.

The benchmark VN Index on the HCM Stock Exchange gained 0.9 percent to close at 542.69 points and the HNX Index on the Hanoi Stock Exchange rose 1 percent to end at 76.26 points.

The energy sector lifted local markets after oil prices improved recently from their twelve-year lows.

US benchmark crude West Texas Intermediate (WTI) on January 27 fell 3.5 percent to trade at 30.34 USD a barrel, but it has gained more than 14 percent from its twelve-year low of 26.55 USD touched a week ago.

London-traded Brent crude lost 2.4 percent to trade at 31.04 USD a barrel, however, it has risen more than 11 percent from a twelve-year low of 27.88 USD a barrel hit on January 20.

Among local energy stocks, PetroVietnam Gas Corporation (GAS) gained 2.8 percent and has jumped 22 percent in the last four sessions, PetroVietnam Drilling and Well Services Corporation (PVD) was up 1.4 percent and has increased by 18 percent, and PetroVietnam Technical Services Corporation (PVS) was up 2.8 percent and has improved by 18 percent.

In addition, investor confidence was bolstered as the US central bank was expected not to raise its lending rate for a second time since December while the 12th National Congress of the Communist Party of Vietnam was coming to an end, ending uncertainty about the country's future leadership, Bao Viet Securities Corporation wrote in a report.

Insurance firms and banks, including insurer Bao Viet Holdings (BVH), gained 2 percent, the Bank for Investment and Development of Vietnam (BID), jumped 4.2 percent, and Saigon-Hanoi Bank (SHB), rose 1.6 percent.

Other stocks that also helped lift the market included dairy firm Vinamilk (VNM), which was up 1.7 percent, and construction company Vietnam Construction and Import-Export JSC (VCG), which gained 1 percent.

However, local markets may not extend gains the rest of this week due to the fluctuation of oil prices and the volatility of global stock markets, Saigon-Hanoi Securities Corporation (SHS) wrote in a report.

Both local markets traded more than 170 million shares worth 2.2 trillion VND (98 million USD), equal to previous day's trading value.-VNA
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