HA NOI (VNS) — Vietnamese shares rebounded on both local exchanges yesterday as energy stocks advanced on expectations that a meeting between the world's biggest oil producers will boost prices.
The benchmark VN Index on the HCM Stock Exchange rose 0.6 per cent to close at 566.11 points. The southern index has increased by 2.2 per cent this week.
The HNX Index on the Ha Noi Stock Exchange added 0.7 per cent to end at 79.06 points. The northern index has risen 1.6 per cent in the past five trading sessions.
The energy stock led the markets up as crude prices advanced on expectations that a meeting in March between the world's top oil exporters, including Russia and Saudi Arabia, will boost prices. Meanwhile, Russia tried to pursuade Iran to reduce oil production, too.
Yesterday the US benchmark crude West Texas Intermediate (WTI) rose 1.5 per cent to trade at US$33.56 a barrel. It has gone up 13 per cent this week.
London-traded Brent crude added 0.8 per cent to trade at $35.58 a barrel. It showed strong volatility this week, but still posted a gain of 7.8 per cent from the previous week.
Among local energy stocks that made gains, PetroVietnam Gas Corporation (GAS) leaped 1.7 per cent, PetroVietnam Drilling and Well Service Corporation (PVD) jumped 3.4 per cent, and PetroVietnam Coating Corporation (PVB) was up 0.9 per cent.
Other sectors that also contributed to the market gains during yesterday's session included the brokerage and food and beverage sectors.
The brokerage sector made gains, led by HCM City Securities Corporation (HCM), which jumped 3.6 per cent, VNDirect Securities Corporation (VND), which added 1.7 per cent, and Bao Viet Securities Corporation (BVS), which rose 2.3 per cent.
In addition, dairy firm Vinamilk (VNM) and the food and beverage producer Masan Group (MSN) increased by 0.8 per cent and 2.8 per cent, respectively, to help lift the markets.
On the other hand, Vingroup JSC (VIC), Vietinbank (CTG), plant grower Hoang Anh Gia Lai JSC (HAG), and Hoang Anh Gia Lai Agricultural JSC (HNG) were the biggest stocks that declined. They fell 1.1 per cent, 0.5 per cent, 1.2 per cent and 2.3 per cent, respectively.
Yesterday, Viet Nam's central bank cut the reference mid-point rate for its exchange trading band by VND4 to VND21,899 for a US dollar.
Both local exchanges yesterday traded nearly 147 million shares worth VND2.4 trillion ($107 million), half of Thursday's trading value. — VNS