Vietnamese shares advanced on July 7 (Photo: VNA)

Hanoi (VNA) - Vietnamese shares advanced on July 7 as investors were upbeat on an uncertain US interest rate increase and higher oil prices helped energy firms rebound.

The benchmark VN Index on the HCM Stock Exchange bounced back 1.8 percent from the slide on the previous day to finish at a fresh eight-year high of 661.12 points.

The HNX Index on the Hanoi Stock Exchange rallied for a fifth day, gaining 1.7 percent to close at 88.16 points. The northern market index has jumped 4.1 percent in the last five sessions.

Investor confidence was bolstered on expectations that the US central bank will take careful measures at the July meeting on whether it could raise interest rates or not.

“We believe that the US interest rates will remain unchanged in July and during the rest of this year,” Bao Viet Securities Corp (BVSC) wrote in its daily report.

The US central bank would want to make sure of stability for global financial markets, which have proved to be vulnerable after the Brexit vote on June 24, BVSC said.

A rate hike would be delayed until the central bank is able to assess all effects that Brexit may cause for the global economy, US central bank announced in the minutes of the June policy meeting.

Higher investor confidence boosted blue chips on the stock market, including Vietcombank (VCB), dairy firm Vinamilk (VNM), insurer Bao Viet Holdings (BVH), Vietinbank (CTG) and Sai Gon-Hanoi Bank (SHB).

VCB ended up 2 percent, VNM advanced 2.8 percent to the fresh highest value ever of VNĐ147,000 (US$6.53), BVH and CTG edged up 0.8 percent and 0.6 percent, respectively, and SHB rose 1.6 percent.

Energy firms such as PetroVietnam Gas Corp (GAS), PetroVietnam Drilling and Well Service Corp (PVD) and PetroVietnam Technical Service Corp (PVS) returned to positive territory as oil prices extended their recovery for a second day.

On the national stock markets, GAS jumped 3.9 percent, PVD increased by 1.3 percent and PVS was up 0.6 percent.

Listed companies that are expected to have higher earnings remained positive, including property developer Vingroup JSC (VIC), steel producers Hoa Sen Group (HSG) and Hoa Phat Group (HPG), and Tien Phong Plastic JSC (NTP).

Investors on both local exchanges traded nearly 216 million shares worth 4.12 trillion VND (183.4 million USD), an increase of 8 percent from the previous trading value.-VNA