Thursday, December 8 2016

VietNamNews

Higher rubber prices boost VN stocks

Update: March, 05/2016 - 09:44
A man looks at a screen showing price movements at VNDirect Securities. — VNS Photo Viet Thanh

HA NOI (VNS)— Vietnamese shares yesterday advanced on both local trading bourses after a mixed Thursday as rubber stocks rose on higher rubber prices in global trading.

The benchmark VN Index on the HCM Stock Exchange added 0.6 per cent to close at 573.65 points, rallying 2.6 per cent over the last four days. The southern index has risen 1.3 per cent this week.

The HNX Index on the Ha Noi Stock Exchange rebounded 0.5 per cent after a slight fall on Thursday to finish at 79.65 points. The northern index rose by 0.7 per cent from the previous week.

Natural rubber producers lifted the markets yesterday because global rubber prices had increased strongly since the beginning of this year, Bao Viet Securities Corporation (BVSC) wrote in a report.

Rubber prices on the Tokyo Commodity Exchange (TOCOM) increased by 2.9 per cent to trade at 169 yen per kilogramme yesterday, reaching a two-and-a-half-month high. Rubber prices on TOCOM have improved by nearly 9 per cent this week, the highest growth since May 2015.

BVSC said this week's gain in prices for rubber, a crude-made product, came after crude prices recovered strongly this week on expectations that the Organisation of Petroleum Exporting Countries (OPEC) and Russia would reach an agreement to cut their production.

Both US benchmark crude oil West Texas Intermediate (WTI) and London-traded Brent crude oil were little changed yesterday. WTI fell 0.03 per cent to trade at VND770,429 a barrel. WTI has grown by 5.4 per cent this week and by 16.6 per cent in the last two trading weeks.

London-traded Brent crude dropped 0.05 per cent to trade at VND825,937 a barrel. Brent crude jumped 5.6 per cent from the previous week and 11.4 per cent during the last eight trading days.

Among natural rubber stocks, Quang Nam Rubber Investment JSC (VHG), Tay Ninh Rubber JSC (TRC), Dong Phu Rubber JSC (DPR) and Phuoc Hoa Rubber JSC (PHR) surged 6.1 per cent, 6.9 per cent, 6.8 per cent and 6.5 per cent, respectively.

The insurance sector also helped lift both markets yesterday, led by BIDV Insurance Corporation (BIC), which gained 2.3 per cent; Bao Minh Insurance Corporation (BMI), which rose by 2.7 per cent; and PVI Holdings (PVI), which added 2.6 per cent.

Yesterday, the FTSE Vietnam Index ETF, a local investment fund run by Deutsche Bank AG, announced it added property developer Sao Mai Group Corporation (ASM), auto distributor Hoang Huy Investment Services JSC (HHS), Hoang Anh Gia Lai Agricultural JSC (HNG) and Hoang Quan Consulting-Trading-Service Real Estate Corporation (HQC) into its investment portfolio for this year's first quarter.

Those shares rose 2.1 per cent, 0.9 per cent, 2.6 per cent and 3.5 per cent, respectively.

Both local markets traded more than 188 million shares worth VND2.66 trillion (VND2,641,661 million), an increase of 3.5 per cent from Thursday's trading value. — VNS


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