Thursday, August 13 2020


VN shares drop on energy stock

Update: November, 01/2016 - 01:00
Investors trace market fluctuations on the Maybank Kim Eng stock trading floor in HCM City. — VNA/VNS Photo Hoàng Hải
Viet Nam News

HÀ NỘI – Shares declined yesterday after a two-day rise as large-cap stocks, led by oil and gas stock, lost steam due to negative earnings as well as volatile oil prices.

The benchmark VN-Index, the measure of 314 stocks on the HCM Stock Exchange, was down 1 per cent to close at 675.8 points. It gained 1.3 per cent in the last two trades.

The Hà Nội Stock Exchange, the HNX-Index tracking 379 stocks, also lost 1 per cent to end at 82.3 points, erasing all the gains it made in the last two sessions.

The overall market breadth was negative with nearly 37 per cent of stocks tumbling while 28 per cent increased.

Blue chips led the downturn as 21 stocks, or 70 per cent of top 30 largest shares by market capitalization, lost value.

Energy stocks were the biggest losers. Analysts attributed this slump to their negative third-quarter earnings as well as world oil markets.

On the HCM City exchange, PetroVietnam Drilling and Wells Service (PVD) dipped 6.4 per cent after the company reported a strong decline in its revenues and profits. Its three-month net sales decreased 68 per cent year-on-year to nearly VNĐ1.2 trillion (US$53.8 million) while its net profits were down 98 per cent in the period, taking in only VNĐ10 billion, the lowest in the last 10 years.

PVD earned VNĐ4.54 trillion in revenues and VNĐ86 billion in net profits, down 40 per cent and 95 per cent, respectively, compared to the same period  last year.

The biggest listed energy company, PV Gas (GAS), dropped nearly 3 per cent. GAS also saw its profit down 60 per cent in the third quarter.

On the Hà Nội bourse, other oil and gas stocks, including PetroVietnam Technical Services (PVS), PetroVietnam Drilling Mud (PVC) and PetroVietnam Coating (PVB), slipped between 3 per cent and 8 per cent.

Oil prices witnessed the first weekly loss last week since mid-September due to unrest at the weekend meeting of the Organisation of Petroleum Exporting Countries (OPEC), the MarketWatch reported.

“Volatility of the stock indices at this stage could increase the market exposure and impede the VN-Index from conquering the short-term peak of 690 points,” analysts of BIDV Securities Co wrote in a note.

Money flows focused on mid-cap shares, particularly in the sectors of construction, building materials and real estate.

A total of 168 million shares worth VNĐ2.6 trillion were traded in the two markets yesterday. Foreign investors were net buyers for the value of VNĐ53.6 billion in the HCM City’s market yesterday but they increased selling on the Hà Nội exchange, responsible for a net sell value of VNĐ2 billion. – VNS






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