Oil prices help VN stocks rebound

Oil prices help VN stocks rebound

Investors work on the Sài Gòn Securities Inc’s trading floor. The VN Index yesterday bounced 0. 七 per cent from a two-day loss of 0. 五 per cent. – VNS Photo Đoàn Tùng

HÀ NỘI – Vietnamese shares advanced yesterday as oil prices rose for a second day, boosting energy stocks.

The benchmark VN Index on the HCM Stock Exchange rebounded 0. 七 per cent to finish at  六 二 四. 六 五 points, erasing a loss of 0. 五 per cent made in the previous two sessions.

The HNX Index on the Hà Nội Stock Exchange bounced back 0. 七 per cent from a small backward step on Monday to close at  八 三. 一 九 points.

Energy stocks rose for a second day as global oil prices held near  一0-month highs on expectations that US stockpiles are declining and the market is reaching a point of rebalance, amid a positive plan announced by Saudi Arabia to reduce its economy’s reliance on oil production.

US crude West Texas Intermediate (WTI) added 0. 五 per cent to trade at US$ 四 九. 九 四 a barrel, rising  二. 七 per cent in the last two trading days. London-traded Brent crude was up 0. 六 per cent to trade at $ 五0. 八 六 a barrel, having climbed a total  二. 五 per cent in two sessions.

The increasing oil prices helped energy stocks make good gains, including PetroVietnam Gas Corp (GAS), PetroVietnam Drilling and Well Service Corp (PVD), PetroVietnam Technical Services Corp (PVS) and PetroVietnam Coating Corp (PVB), whose gains ranged between  一. 七 per cent and  二. 七 per cent.

Additionally, investor confidence improved as analysts were optimistic that the US central bank will not increase its interest rates in June and July, given the disappointing US economic data published late last week.

That expectation has weakened the US dollar on global exchange markets and helped Việt Nam’s central bank cut its daily reference mid-point rate by VNĐ 一 八 to VNĐ 二 一, 八 九 六 for a dollar. The mid-point rate has dropped sharply by VNĐ 四 三 in the past two days.

Higher investor confidence lifted leading businesses such as property developers, rubber and plastic producers, steel companies and food and beverage firms.

In the property sector, Vingroup JSC (VIC), Kinh Bắc City Development Share Holding Corp (KBC), FLC Group (FLC) and Sài Gòn Thương Tín Real Estate JSC (SCR) were among the strongest gainers.

Steel producers such as Hòa Phát Group (HPG), Hoa Sen Group (HSG) and Vietnam-Italy Steel JSC (VIS) advanced between  一 per cent and  二. 五 per cent.

A stronger Vietnamese đồng made local stocks attractive to foreign investors. Yesterday, foreign investors recorded a net buying value of VNĐ 一0 四. 二 billion ($ 四. 六 三 million) in both local exchanges.

Both local exchanges traded  一 一 七. 三 million shares worth VNĐ 二. 五 五 trillion, a decrease of  一0 per cent from Monday’s trading value. – VNS