Vietnam’s stocks suffer after oil prices drop hinh anh 1An investor watches market movements at the Royal Securities Company. (Photo: VNA)

Hanoi (VNA) –
Vietnamese shares finished lower on June 16, erasing gains in the earlier session, as energy firms extended losses following another drop in crude prices.

The benchmark VN Index on the HCM Stock Exchange retreated 0.3 percent to end at 625.11 points after rising 0.6 percent in the previous two trading days.

The HNX Index on the Hanoi Stock Exchange inched down 0.2 percent to close at 84.15 points, extending losses for a second day.

Global oil prices fell for a sixth day, the longest losing streak in four months, as investors worried about the possibility that Britain may decide to quit the European Union on June 23, as well as the rebound in Canada’s production.

US crude West Texas Intermediate (WTI) and London-traded Brent crude slipped 1.5 percent each to trade at 47.29 USD and 48.23 USD a barrel, respectively.

US crude has fallen 7.7 percent in the last six days, and Brent crude has dipped 8.2 percent during the same time.

On local markets, PetroVietnam Gas Corp (GAS), PetroVietnam Drilling and Well Service Corp (PVD), PetroVietnam Coating Corp (PVB) and PetroVietnam Mud Drilling Corp (PVC) were among the biggest decliners, losing between 2.4 percent and 4.8 percent.

Additionally, most listed banks continued to decline. Banks that had the strongest falls were Vietnam Joint Stock Commercial Bank for Industry and Trade (CTG), Saigon Thuong Tin Commercial Joint Stock Bank (STB) and Saigon-Hanoi Bank (SHB) with the loss of 1.1 percent, 0.9 percent and 1.6 percent, respectively.

On a positive note, investor confidence was bolstered by the US central bank’s decision to delay an increase in interest rates after a two-day meeting, Bao Viet Securities Corp (BVSC) wrote in its daily report.

“The US central bank’s decision came after recent economic data was less than expected, and Britain will likely remove its membership from the European Union later this month,” BVSC said.

Higher investor confidence helped lift local rubber and plastic producers such as Tien Phong Plastic JSC (NTP), Southern Rubber Industry JSC (CSM), Da Nang Rubber JSC (DRC) and An Phat Plastic and Green Environment JSC (AAA).

NTP gained 2.7 percent, CSM jumped 3.9 percent, DRC advanced 1.6 percent and AAA rose 4 percent.

Investors on both local exchanges traded more than 179 million shares worth nearly 2.9 trillion VND (128.4 million USD), an increase of 11 percent from previous day’s trading value.-VNA