Tuesday, December 6 2016

VietNamNews

VN shares fall after short surge

Update: September, 01/2015 - 08:56
Investors watch market development at Ha Noi-based APEC Securities Company yesterday. — VNS Photo Doan Tung

HA NOI (VNS) — Vietnamese shares fell yesterday, ending a four-day surge, as a drop in global oil prices undermined the country's energy companies.

The HCM Stock Ex-change's benchmark VN Index lost 1.1 per cent to close at 564.75 points and the HNX Index on the Ha Noi Stock Exchange was down 1.8 per cent to finish at 76.9 points.

Brokerage Sai Gon-Ha Noi Securities (SHS) said that the market pullback would likely continue during this week. Global oil price volatility and key economic data to be announced by the US and China this week will likely impact the Vietnamese stock market in the next three sessions, SHS said.

US crude oil benchmark West Texas Intermediate fell 1.9 per cent on Monday after jumping 18 percent last week, triggering a loss of 3.7 per cent in Petrovietnam Technical Services (PVS) and a 3.2 per cent decline in Petrovietnam Drilling & Well Services (PVD).

Energy firms, banks and insurers – the three leading sectors of the market – were the strongest decliners with a decrease of 2.4 per cent, 2.2 per cent and 2.6 per cent, respectively.

Among the nine banks traded on the index, Eximbank (EIB) had the highest drop in share value by decreasing 4.1 per cent. In the first half of the year, Eximbank earned a net after-tax profit of VND442 billion ($19.6 million), a decrease of 14 per cent over last year's figure.

Other banks such as Vietinbank (CTG), Sai Gon-Ha Noi Bank (SHB) and Sacombank (STB) also recorded sharp losses.

Yesterday, trading on the two exchanges reached more than 172 million shares in volume and VND2.7 trillion ($120.4 million) in value. — VNS

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