Saturday, December 3 2016

VietNamNews

Plunging crude prices pull VN stocks down

Update: January, 21/2016 - 10:03
The benchmark VN Index on the HCM Stock Exchange dropped 1.2 per cent to close at 529.44 points and the HNX Index on the Ha Noi Stock Exchange lost 0.5 per cent to end at 73.93 points. — VNS Photo Gia Vi
HA NOI (VNS)  — Vietnamese shares fell for a fifth day in the last six as global crude prices slid further, undermining energy stocks.

The benchmark VN Index on the HCM Stock Exchange dropped 1.2 per cent to close at 529.44 points and the HNX Index on the Ha Noi Stock Exchange lost 0.5 per cent to end at 73.93 points.

Yesterday, crude prices fell to fresh twelve-year lows. US benchmark crude West Texas Intermediate (WTI) lost 2.5 per cent to trade at US$27.76 a barrel and London-traded Brent crude was down 1.5 per cent to trade at $28.33 a barrel.

The energy sector index lost 2 per cent, led by PetroVietnam Gas Corporation (GAS), which slumped 3.8 per cent, PetroVietnam Technical Services Corporation (PVS), which declined by 2.2 per cent, and PetroVietnam Drilling and Well Services Corporation (PVD), which dropped 5.4 per cent.

Investor confidence was also hurt after Asian stocks fell yesterday, including a fall of 1.5 per cent in Chinese stocks, as the country's December industrial output, investment and retail sales data released on Tuesday were weaker than expected. The International Monetary Fund (IMF) cut its forecast for global economic growth this year due to the slowdown in emerging economies such as China.

Financial firms were caught up in the sell-off, including insurance companies and banks. The insurance sector index lost 1.4 per cent and the banking sector dropped 1.3 per cent yesterday.

Insurer Bao Viet Holdings (BVH) was down 1.7 per cent, the Bank for Investment and Development of Viet Nam (BID) fell 1.2 per cent, and Vietinbank (CTG) slumped 2.9 per cent.

Other stocks that also helped pull back the markets yesterday included property developer Vingroup JSC (VIC), which inched down 0.2 per cent, agricultural firm Hoang Anh Gia Lai JSC (HAG), which dropped 6.3 per cent.

Both local exchanges traded more than 166 million shares worth VND2.27 trillion ($101 million), an increase of 12 per cent from Tuesday's trading value. — VNS

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