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VietNamNews

Oil prices drag VN stocks down

Update: June, 17/2016 - 09:00
An investor watches market movements at the Royal Securities Company. — VNS Photo Trương Vị
Viet Nam News

HÀ NỘI — Vietnamese shares finished lower yesterday, erasing gains in the earlier session, as energy firms extended losses following another drop in crude prices.

The benchmark VN Index on the HCM Stock Exchange retreated 0.3 per cent to end at 625.11 points after rising 0.6 per cent in the previous two trading days.

The HNX Index on the Hà Nội Stock Exchange inched down 0.2 per cent to close at 84.15 points, extending losses for a second day.

Global oil prices fell for a sixth day, the longest losing streak in four months, as investors worried about the possibility that Britain may decide to quit the European Union on June 23, as well as the rebound in Canada’s production.

US crude West Texas Intermediate (WTI) and London-traded Brent crude slipped 1.5 per cent each to trade at US$47.29 and $48.23 a barrel, respectively.

US crude has fallen 7.7 per cent in the last six days, and Brent crude has dipped 8.2 per cent during the same time.

On local markets, PetroVietnam Gas Corp (GAS), PetroVietnam Drilling and Well Service Corp (PVD), PetroVietnam Coating Corp (PVB) and PetroVietnam Mud Drilling Corp (PVC) were among the biggest decliners, losing between 2.4 per cent and 4.8 per cent.

Additionally, most listed banks continued to decline. Banks that had the strongest falls were Việt Nam Joint Stock Commercial Bank for Industry and Trade (CTG), Sài Gòn Thương Tín Commercial Joint Stock Bank (STB) and Sài Gòn-Hà Nội Bank (SHB) with the loss of 1.1 per cent, 0.9 per cent and 1.6 per cent, respectively.

On a positive note, investor confidence was bolstered by the US central bank’s decision to delay an increase in interest rates after a two-day meeting, Bảo Việt Securities Corp (BVSC) wrote in its daily report.

“The US central bank’s decision came after recent economic data was less than expected, and Britain will likely remove its membership from the European Union later this month,” BVSC said.

Higher investor confidence helped lift local rubber and plastic producers such as Tiền Phong Plastic JSC (NTP), Southern Rubber Industry JSC (CSM), Đà Nẵng Rubber JSC (DRC) and An Phát Plastic and Green Environment JSC (AAA).

NTP gained 2.7 per cent, CSM jumped 3.9 per cent, DRC advanced 1.6 per cent and AAA rose 4 per cent.

Investors on both local exchanges traded more than 179 million shares worth nearly VNĐ2.9 trillion ($128.4 million), an increase of 11 per cent from Wednesday’s trading value. — VNS

 

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