Vietnam’s stocks up on rising oil, positive forecasts

Hanoi (VNA) - Vietnamese shares advanced on both local exchanges on March 28 as energy firms rose on higher oil prices and other companies gained on expectations for better earnings this year.

The benchmark VN Index on the HCM Stock Exchange added 0.6 percent to close at 575.72 points, extending gains for a second day.

The HNX Index on the Hanoi Stock Exchange bounced 0.9 percent from March 25 to finish at 80.43 points.

Local energy stocks ended higher as oil prices rebounded from a two-day decline.

US benchmark crude West Texas Intermediate (WTI) rose 1 percent to trade at 39.87 USD points. WTI fell 4.8 percent during the previous two trading days.

London-traded Brent crude added 0.9 percent to trade at 40.79 USD a barrel. Brent crude dropped 3.2 percent in the previous two sessions.

Energy stocks that made gains included PetroVietnam Coating Corporation (PVB) and PetroVietnam Drilling and Well Service Corporation (PVD) added 2.6 percent and 2.4 percent, while PetroVietnam Technical Service Corporation (PVS) rose 1.2 percent.

Property developers and steel producers made gains on expectations of higher earnings this year.

The property sector was lifted by Phat Dat Real Estate Development JSC (PDR) and Hoang Quan Consulting-Trading-Service Real Estate Corporation (HQC).

PDR jumped 4.9 percent after the company announced it will make earnings this year that doubled from last year’s figures, HQC jumped 3.5 percent after the company last week announced it will allow foreign investors to raise their ownership to 60 percent.

Other property stocks also advanced, including Vingroup JSC (VIC), FLC Group (FLC) and Nam Long Investment Corporation (NLG), which increased by 2 percent, 1.5 percent and 1.7 percent.

Among steel producers, Tien Len Steel Group JSC (TLH) surged 6.9 percent on expectations its inventory will reduce in the second quarter of this year, and Vietnam Germany Steel Pipe JSC (VGS) rocketed 9.3 percent after the company reported higher earnings last year compared to 2014.

The biggest stocks in the steel industry such as Hoa Phat Group JSC (HPG) and Hoa Sen Group (HSG) also made gains.

Among other stocks that helped drive the markets up, PetroVietnam Power Nhon Trach 2 JSC (NT2) surged 5.9 percent after the company targeted higher earnings this year and a 20 percent dividend payment for shareholders.

Other large-cap stocks such as dairy firm Vinamilk (VNM), food and beverage producer Masan Group (MSN) and insurer Bao Viet Holdings (BVH) also ended higher to lift the markets.

Both local exchanges traded more than 179 million shares worth 2.68 trillion VND (119 million USD), a decrease of 10 percent from last week’s daily trading value.-VNA