|Investors at the SSI exchange floor in Ha Noi. Local energy stocks pulled the market down after global oil prices declined on Wednesday. — VNS Photo Doan Tung
HA NOI (VNS) — Vietnamese shares were slightly lower in HCM City, reversing the previous day's gain, as a drop in global oil prices dragged down energy companies.
The benchmark VN Index on the HCM Stock Exchange fell 0.01 per cent to close at 574.38 and the HNX Index on the Ha Noi Stock Exchange was down 0.6 per cent to end at 80.08 points.
Global oil prices dropped on Wednesday after Iran – a leading oil exporter – said it would likely increase its production next year, boosting global crude stockpiles.
The Organisation of Petroleum Exporting Countries, which produces about 40 per cent of the world's oil, is scheduled to meet today in Vienna.
The US benchmark crude West Texas Intermediate (WTI) fell 4.6 per cent to trade at US$39.94 a barrel and the Euro-based Brent crude lost 4.4 per cent to trade at $42.49 a barrel.
The local energy stock index was down 1 per cent yesterday. The biggest energy companies such as PetroVietnam Gas Corporation, PetroVietnam Drilling & Well Services Corporation and PetroVietnam Technical Services Corporation fell from Wednesday values.
These three companies lost 1.7 per cent, 1.6 per cent and 2.1 per cent by the end of yesterday, respectively.
Meanwhile, agricultural firms such as Hoang Anh Gia Lai Joint Stock Company (HAGL) and its subsidiary HAGL Agriculture Joint Stock Company were the major reasons pulling the agriculture sector down.
HAGL (HAG) dropped 2.4 per cent yesterday as investors, reversing its 5 per cent surge on Wednesday.
HAGL Agriculture Joint Stock Company (HNG) inched down 0.7 per cent after its parent company announced it will issue more HNG shares to the parent company's shareholders as a dividend.
On the positive side, the banking sector index extended their gains for a second day following the World Bank's expectation that Viet Nam's central bank will not tighten its monetary policy in the near term.
The biggest listed banks made gains yesterday, including Vietcombank (VCB) which was up 1 per cent, the Bank for Investment and Development of Viet Nam (BID) inched up 0.5 per cent, and Sacombank (STB) which jumped 2.7 per cent.
Both local exchanges traded more than 167 million shares, worth VND2.9 trillion ($130 million), an increase of 47 per cent from Wednesday value. — VNS