Vietnamese shares drop on lower oil prices
Vietnamese shares declined on June 13 as investor confidence was driven down by lower oil prices and fears over negative economic conditions on the global markets.
Illustrative image (Source: VNA)The benchmark VN Index on the HCM Stock Exchange fell 1 percent to finish at 623.58 points, extending a two-day fall of 1.2 percent.
The HNX Index on the Hanoi Stock Exchange retreated 0.7 percent to close at 84.30 points from a ten-month high. The northern market index had risen 9.4 percent to 84.85 points at the end of last week.
Energy stocks weighed on investor confidence as crude prices slid further after the markets witnessed an increase in the number of active US oil rigs.
US crude West Texas Intermediate (WTI) slipped 1.2 percent to trade at 48.48 USD a barrel, decreasing by 5.4 percent in the last four trading days from a eight-month high reached on June 8.
London-traded Brent crude was down 1 percent to trade at 50.03 USD a barrel, totaling a four-day loss of 4.7 percent.
PetroVietnam Drilling and Well Services Corp (PVD), Petroleum Equipment Assembly and Metal Structure JSC (PXS), PetroVietnam Coating Corp (PVB) and PetroVietnam Mud Drilling Corp (PVC) were among the biggest losers, falling between 4.2 percent and 6.5 percent.
PetroVietnam Gas Corp (GAS), PetroVietnam Technical Services Corp (PVS) and Southern Gas JSC (PGS) also recorded losses on June 13.
"Vietnam's stock markets went down along with other Asian markets as investors worried over a US rate increase this week, a British exit from the European Union, and recent negative news from the biggest economies," Bao Viet Securities Corp (BVSC) wrote in its daily report.
Investors tried to retreat from local stocks for safe assets such as bonds and gold, BVSC said. On June 13, foreign investors recorded a net selling value of 64 billion VND (2.87 million USD) on both local markets, a backward step from a net buying value of 209.3 billion VND on June 10.
Low investor confidence pulled large-cap stocks in the real estate, banking, insurance and brokerage sectors down.
Among those firms, insurer Bao Viet Holdings (BVH) slumped 3.1 percent, Vietinbank (CTG) and the Bank for Investment and Development of Vietnam (BID) were down 1.1 percent and 1.6 percent, respectively, and consumer goods producer Masan Group (MSN) lost 1.4 percent.
Additionally, carpart distributor Hoang Huy Investment Services JSC (HHS), property and retailer firm Vingroup JSC (VIC) and sugar producer Thanh Thanh Cong Tay Ninh JSC (SBT) decreased on expectations that the foreign investment fund VanEck Market Vectors ETF will reduce its ownership of those stocks.-VNA
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