Shares lose ground on sinking oil

November, 07/2018 - 07:00

Shares no longer maintained a positive momentum at the end of Tuesday’s session due to the sudden increase in selling pressure, pushing a series of large cap stocks down, especially banking and oil stocks.

Investors watch market movements at a Bảo Việt Securities Co’s trading floor in Hà Nội. — VNA/VNS Photo Trần Việt
Viet Nam News

HÀ NỘI — Shares lacked positive momentum at the end of Tuesday’s session due to a sudden increase in selling pressure, pushing large cap stocks down, especially banking and oil stocks.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange lost 0.38 per cent to close Tuesday morning at 922.05 points.

The benchmark rose 0.07 per cent to close at 925.53 points on Monday.

The HNX Index on the Ha Noi Stock Exchange slumped 0.93 per cent to end at 104.55 points.

The northern market index lost 0.21 points to 105.54 points on Monday.

Liquidity was modest with nearly 176 million shares traded on the two exchanges, worth nearly VNĐ3.6 trillion (US$154 million).

The market was also pulled down by the rally of large-cap stocks in the VN30 basket.

The VN30 Index, which tracks the movement of the 30 largest stocks by market capitalisation, was up 0.58 per cent to 899.61points.

Banking stocks were hit strongly, especially Asia Commercial Joint Stock Bank (ACB), Bank for Investment and Development (BID), Vietinbank (CTG), HDBank (HDB), Military Bank (MBB), Saigon Hanoi Commercial Joint Stock Bank (SHB), Vietcombak (VCB) and VPBank (VPB).

Energy stocks were also pulled down by a slide in global oil prices. Notable decliners were Viet Nam National Petroleum Group (PLX), Petro Vietnam Gas JSC (GAS), Drilling Mud Joint Stock Corporation (PVC), PetroVietnam Drilling & Well Services Corporation (PVD) and PetroVietnam Technical Services Corporation (PVS).

Global crude prices wobbled near multi-month lows after the US allowed eight countries to temporarily continue buying oil from Iran, addressing supply concerns as Washington formally imposed sanctions on the Islamic republic.

US West Texas Intermediate (WTI) crude futures slipped 0.3 per cent to $62.89 a barrel, after hitting a seven-month low of $62.52 on Monday.

Brent crude futures dropped 0.6 per cent to $72.74 a barrel, near Friday’s two-month low of $72.16.

Both oil benchmarks have slid more than 15 percent since hitting four-year highs in early October.

Other large-cap stocks such as FLC Faros Construction Joint Stock Company (ROS), jewelry producer Phú Nhuận  JSC (PNJ), Masan Group (MSN), steel maker Hòa Phát Group (HPG) and FPT Corporation (FPT) also lost ground, pushing pressure on the market.

In reverse, thanks to the support of some blue-chips such as insurer Bảo Việt Holdings (BVH), brewery Sabeco (SAB), Techcombank (TCB) and dairy firm Vinamilk (VNM), the downward momentum of market indices was narrowed.

Local investors are worried over the market’s short term prospects as caution prevailed ahead of US mid-term elections.

The US will head to the polls for the Congressional mid-term elections Tuesday.

According to a forecast by CNN, Democrats would win 226 seats in the House of Representatives (218 needed for a majority). Meanwhile, Republicans look set to win the US Senate.

According to Bảo Việt Securities Company (BVSC), US stock markets may experience some strong volatility, affecting the local market.

The Unlisted Public Company Market (UPCoM) index edged up 0.17 per cent to finish at 51.64 points. The unlisted market index lost 0.37 per cent to finish at 51.55 points in the previous session. — VNS